Through Dec 2023

charts & analysis: Interest Rates & Inflation

Interest Rates & Inflation

The fundamental relationship that is widely accepted today–that interest rates, particularly long-term rates, are directly affected by the rate of inflation–was not apparent during the first two-thirds of the past century. This historical reality creates significant implications for the use of historical interest rates prior to the 1960s…or casts doubts as to the relationship between interest rates and inflation.