Well, if the set interest rates lower than the natural rate then they will have rising inflation and output which will mean an ever increasing natural rate and even faster inflation until eventually the economy moves into hyper-inflation and their control over the medium of exchange collapses.
The rise in China's relative costs has been even greater given its higher inflation rate.
Rising commodity prices feed into rising real estate prices, as investors rush to buy real assets that are expected to keep up or even exceed the rate of inflation.
But then it accelerates rapidly past even the most dire predictions of inflation rate, meaning a 23% increase in the total rates bill.
Some of them may even appreciate at a rate greater than inflation.
Even at a historically modest 3% rate of inflation, a 40 year old can expect prices to more than double by the time he or she retires at age 65.
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Of course, that is even greater if you adjust for the faster rate of inflation in China relative to the United States.
There will be a dilemma for the Bank of England, because the headline rate of inflation is likely to rise even more above target.
The rate is negative even in the present low inflation setting.
So this weakness could delay a rate hike, even as 12 month rolling IPCA inflation is around 6.4%, not where the Central Bank wants it.
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We know exactly how it is created, even insofar as the rate that it is created and its effect on inflation.
Even those would not be allowed, by law, to exceed the inflation rate unless local voters said otherwise in a referendum.
After all, from 1982 to 1990 the economy boomed at even higher growth rates than it did during the 1990s, and the inflation rate plummeted.
But holders of U.S. debt purchased over the last few years are getting interest rate payments below 2% on average, even less after inflation.
That is slightly higher than the current rate of inflation, meaning that workers are earning more even when higher prices are taken into account.
This means that some people have become higher rate taxpayers even if their wages only rose in line with inflation, an effect known as fiscal drag.
Even those who try to protect themselves against inflation by buying TIPS and other adjustable rate securities find their refuge is limited by the fact that government decides how much inflation to report.
Medicaid is converted into a block grant whose value grows at the rate of inflation starting in 2013, so its value will fall even further behind projected healthcare costs than Medicare vouchers (producing big savings for the federal government).
Even our figure of 3.8% represents a fall in real terms, since the inflation rate is 4.2%.
Prices are rising even faster than inflation on things such as health care, which the elderly consume at a greater rate.
Even after his latest rate cut, Mr Singh reassured savers that the schemes would still offer an inflation-adjusted yield of 6.3% a year.
Even though the real has been appreciating to a level that is uncomfortably strong for manufacturers, the inflation rate has steadily been edging up.
As Tim Lee of pi Economics points out, the Turkish lira is as strong against the euro as it was in 2002, even though its current-account deficit is running at around 7% of economic output and its inflation rate has been significantly higher than that of the euro zone over the past five years.
In terms of risk, cash is likely to be less risky than even 'cautious' investments - but it is also unlikely to offer an interest rate that keeps pace with inflation.
Alas, the same cannot be said for average earnings, which have actually now fallen even further behind inflation in October with average annual growth of just 1.3% - less than half the rate of inflation.
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