Very interesting!
[h=1]Compare and contrast, 5000 years of interest rates[/h] David Keohane
| Sep 18 10:51 | 8 comments |
You may have seen the post-Fed note from BofAML’s Hartnett land in your inboxes…
But have you seen the effort of UBS’s Costa Vayenas?
According to Vayenas, the main differences with the BoE’s chart are (we have requested Hartnett’s methodology and will update when it lands):
Note that all three rely on Homer and Sylla’s seminal tome for the very earliest interest rates. So here’s a table (click to enlarge) on Sumerian through to Persian monetary policy 3000-400 BC, from the book:
http://ftalphaville.ft.com/2015/09/18/2140402/compare-and-contrast-5000-years-of-interest-rates/
[h=1]Compare and contrast, 5000 years of interest rates[/h] David Keohane
| Sep 18 10:51 | 8 comments |
You may have seen the post-Fed note from BofAML’s Hartnett land in your inboxes…
But have you seen the effort of UBS’s Costa Vayenas?
According to Vayenas, the main differences with the BoE’s chart are (we have requested Hartnett’s methodology and will update when it lands):
The BoE chart stops using the country with the lowest interest rate and switches to using what it assumes is “the most dominant” money market, which is essentially the UK and the US (when their data become available). This means that the BoE chart does not show the lower rates that were available elsewhere (e.g. Swiss rates were 130bps below UK rates in 1895 and 740bps below US rates in 1981). Because of this, the BoE chart also does not show today’s negative rates available outside of the US and the UK.
The BoE chart compresses the first few thousand years, whereas this chart does not. The visual impact of showing the full 5,000 years is very different, therefore.
So there. And there.The BoE chart compresses the first few thousand years, whereas this chart does not. The visual impact of showing the full 5,000 years is very different, therefore.
Note that all three rely on Homer and Sylla’s seminal tome for the very earliest interest rates. So here’s a table (click to enlarge) on Sumerian through to Persian monetary policy 3000-400 BC, from the book:
http://ftalphaville.ft.com/2015/09/18/2140402/compare-and-contrast-5000-years-of-interest-rates/
