By Karl Smith, Contributor Matt Yglesias writes whenever I look at the trend in the personal savings rate I wonder to what extent the low inflation environment of the “Great Moderation” played a role. If people suffer from money illusion (which they do) then a low interest rate environment is going to make interest rates look lower than they really are, and perhaps discourage saving and encourage borrowing. Two things …read more

Source: FULL ARTICLE at Forbes Latest