Wednesday, January 13, 2021

Interest on Short-Term Money

The following is a chart of the weighted average interest rate earned on the interest bearing components included in the MZM (money of zero maturity).



This series was discontinued in the summer of 2019. Unless someone can convince me that our easy money housing market can tolerate higher interest rates, or that stimulus money flooding into banks means that banks will offer higher interest rates to attract even more money, I offer a potentially suitable alternative for this series going forward.



It's Japanese. It's a Zero. Easy to remember. No chart necessary.

2 comments:

Anonymous said...

In 2007 I had an HSBC online account earning 5.05%. Closed it in 2009.

12 years and counting.

Stagflationary Mark said...

My interest checking account is currently earning 0.01%.

Maybe it’s just me, but it kind of feels like a symbolic gesture. ;)