Negative real interest rates among developing countries result when they print too little money.

Question

Quizplus · Accepted Answer

Negative real interest rates occur when the nominal interest rate is lower than the inflation rate. This can happen for many reasons, including excessive money printing, but also due to other factors such as a weak economy or low productivity growth. Therefore, it is not necessarily the case that printing too little money causes negative real interest rates in developing countries.

Negative Real Interest Rates Among Developing Countries Result When They