If I am correctly informed, then it is an economic law that the real interest rate corresponds to real economic growth.
    Why is this the case?

    Or put differently, why should interest rates on low-risk government bonds, in theory, correspond to economic growth plus inflation?

    Or am I misunderstanding this?

    Why do real interest rates need to correspond to real economic growth?
    byu/Old-Maybe7346 inAskEconomics



    Posted by Old-Maybe7346

    Leave A Reply
    Share via