Why are real interest rates not that important compared to nominal interest rates?
Take NZD, CPI is higher than the interest rates (last time i checked), so why wouldn't that be bad for NZD considering the negative yield?
Is it because the high CPI means interest rates will go up higher in the future??...
or because non New Zealanders investing in NZ don't have to worry about the CPI when they unwind their investment and spend it in their Lower CPI home country??
Take NZD, CPI is higher than the interest rates (last time i checked), so why wouldn't that be bad for NZD considering the negative yield?
Is it because the high CPI means interest rates will go up higher in the future??...
or because non New Zealanders investing in NZ don't have to worry about the CPI when they unwind their investment and spend it in their Lower CPI home country??