High taxes on interest income driving up real interest rates, study finds.
Interest rates have been a hot topic, with many saying they're too high. Yash Mehra's article says we should focus on after-tax real rates, which consider taxes on interest income. Changes in these taxes affect nominal interest rates. In the 1970s, real rates were negative due to high inflation and economic shocks. Today's rates may seem high compared to then, but they're not much higher than in the '50s and '60s.