The WSJ cited a bond trader, David Ader, as saying the real interest rate on Treasury bonds is the highest since the 80s. Determining the real interest rate depends on expectations of inflation, which are difficult to know. However, the interest rate on 10-year inflation indexed Treasury bonds is just 2.15 percent, well below its late 90s levels.

–Dean Baker

Dean Baker is senior economist at the Center for Economic and Policy Research in Washington, D.C. He is the author of several books, including Rigged: How Globalization and the Rules of the Modern Economy Were Structured to Make the Rich Richer. Read more about Dean.