> if the rate of inflation were to slowly increase by one percentage point per year, for the next 30 years, what would be the right real rate of interest right

> if the rate of inflation were to slowly increase by one percentage point per year, for the next 30 years, what would be the right real rate of interest right now — assuming we knew this were going to happen? the rate would increase exponentially according to the number of days between the present and the maturity date. the rate for securities that could be redeemed on demand would steadily increase, but represent the lowest rate (because you would always have the option to decide to claim your money). whereas a 30 year cd would have the highest rate in the market.