How shall we calculate the real short-term interest rate? Shall we take the 1-year yield and subtract out year-over-year CPI? If so, which CPI should we use: the BLS' CPI or Shadowstats' CPI?
Or, if we use TIPS, which maturity should we use? The shortest maturity on Bloomberg's website seems to be the 5-year.
Looking forward to your reply.
dcp