Lower Inflation Due to Lower Oil Prices Does Not Raise Real Interest Rates for Businesses

That would be unless the business in the oil industry. A NYT piece on the drop in inflation across Asia seems confused on this point. It notes the sharp decline in the inflation rate across the region, which is mostly due to lower oil prices, and raises the concern that this may discourage businesses from investing.

This logic doesn't work insofar as the lower inflation is simply due to lower oil prices. From the standpoint of a business considering a new investment what matters is the price...