Ken Rogoff – “Oh, I’m definitely in the school that they (real rates) are going to stay high for as far as the eye can see.” 

Dr. Rogoff understands that he is in the academic minority with his viewpoint and disagrees with the latest demographic and productivity papers indicating this rates regime is transitory.  He still thinks that the fundamentals point to higher rates over the long term. The rate of change of rates is indeed high.  However, in terms of the differential being within a normal deviation from standard rates throughout history, it’s not that big of an increase.