During periods of high inflation, such as the 1979-1980 period, the existence of usury laws may cause

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During periods of high inflation, real interest rates can become negative if nominal rates do not increase sufficiently to compensate for the loss of purchasing power. Usury laws, which cap the interest rates that can be charged, can prevent nominal rates from rising to a level that would maintain positive real interest rates, leading to negative real rates of interest.

During Periods of High Inflation, Such as the 1979-1980 Period