> In theory, the risk-free return should be equal to the rate of inflation -- nothing ventured nothing gained. The rate of return is the opportunity cost of ca

> In theory, the risk-free return should be equal to the rate of inflation -- nothing ventured nothing gained. The rate of return is the opportunity cost of capital. As long as you have economic growth there will be an interest rate. When the government puts an interest rate below the natural rate it is making the machine work harder, but not necessarily better. It gives people that have access to the natural rate of return an above-natural return.