Julian Van Erlach

TIPS: Nominal Yield, Risky Real After-Tax Return

Dear Greg,

Consider that the UK consol during the entire pure gold standard 1820- 1910 - through depressions and wars, exhibited a constant real yield (my article on gold). Supply and demand for long term capital would seem to only clear when both sides agree that the maximum real return after tax that can be earned/paid is ...real per capita productivity growth.