The author commits a common fallacy that even finance professionals fall prey to: nominal rate fallacy. Nominal rates do not matter. Real rates matter. Price

The author commits a common fallacy that even finance professionals fall prey to: nominal rate fallacy. Nominal rates do not matter. Real rates matter. Price of risk is not a function of nominal interest rate. It is something that is in excess of interest rate. Increase or decrease in interest rate just translates coordinates by a constant amount. Laws of motion do not change.