3 ms·
Yeah, I think "r > g" is more likely. The article talks about the "risk-free rate" (ie. bonds/CD's etc) which is not really "r" (which could vary widely for ind
by cinquemb 8y ago
Yeah, I think "r > g" is more likely. The article talks about the "risk-free rate" (ie. bonds/CD's etc) which is not really "r" (which could vary widely for individuals/groups/institutions). The "risk-free rate" seems like it has alot more in common with g than r.
I think the problem is that our nations are having globally is that "g" (refers to the growth in the national income) is declining, which to me says that governments/nations are becoming increasingly inefficient at allocating capital overall compared to the likes of rentec, two-sigma, etc.(especially as capital becomes less sticky to a particular nation).