Search: Real interest rate
RBA Glossary definition for Real interest rate
Real interest rate – The real interest rate refers to the cost of borrowing money (i.e. the nominal interest rate) net of inflation. It takes account of the fact that part of the nominal interest that borrowers pay to lenders represents compensation for anticipated inflation. The remaining �real� component better reflects the economic cost of borrowing and the return to lending.
RBA Glossary definition for interest rate
interest rate – The term used to describe the cost of borrowing money or the return to the owner of the funds which are invested or lent out. It is usually expressed as a percent per annum of the amount of money borrowed, lent or invested.
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Financial Markets, Institutions and Liquidity | Conference – 2013
19 Aug 2013
Conferences
The effect of withdrawing these measures and returning to a normal interest rate regime is also not well understood. ... Furthermore, the size and relative importance of the trading institution has a negative impact on the interest rate charged for
https://www.rba.gov.au/publications/confs/2013/allen-carletti.html
Contractions in Chinese Fertility and Savings: Long-run Domestic and Global Implications | Conference – 2016
18 Mar 2016
Conferences
It employs an exponential consumption equation that links group real per capita consumption expenditure to real per capita disposable income and the real rate of return on the assets of the ... per capita income and real interest rate shocks.
https://www.rba.gov.au/publications/confs/2016/golley-tyers-zhou.html
Asset Prices, Financial Imbalances and Monetary Policy: Are Inflation Targets Enough? | Conference – 2003
18 Aug 2003
Conferences
1. ) is the real interest rate, r. o. t. is the flexible-price, or natural, real interest rate and v. ... the exchange rate – seen as a monetary variable – boosts demand in the same way as does a reduction in nominal interest rates.
https://www.rba.gov.au/publications/confs/2003/bean.html
Regulatory Competition and the “Generic” Financial-Services Firm | Conference – 1991
21 Jun 1991
Conferences
At the lower end, fund-raising becomes tougher, as firms with their backs to the wall force unsustainably high explicit and implicit interest rates to be paid to savers. ... It pays them to seek to “grow out of their problems” by bidding up deposit
https://www.rba.gov.au/publications/confs/1991/kane.html
The Objectives for, and Conduct of, Monetary Policy in the 1990s | Conference – 1992
21 Jun 1990
Conferences
In the long term, nominal interest rates will be determined by real (international) forces and the expected rate of inflation.). ... Hence, in order to raise real interest rates, nominal interest rates must be raised significantly more than the prior
https://www.rba.gov.au/publications/confs/1992/goodhart.html
Money and Finance | Conference – 1990
21 Jun 1990
Conferences
However, with the general rise in interest rates, the interest rate ceilings on banks became binding. ... In this approach, a variety of indicators would be considered including the rate of inflation, the exchange rate, interest rates, the balance of
https://www.rba.gov.au/publications/confs/1990/milbourne.html
The Key Obstacles to Success in Economic Catching Up by China | Conference – 2016
18 Mar 2016
Conferences
where. r = real interest rate on government debt. f = primary fiscal deficit rate = [state expenditure excluding debt service – state revenue]/GDP. ... The real interest rate is in the historical range of 3–7 per cent.
https://www.rba.gov.au/publications/confs/2016/woo.html
Inflation Targeting and Japan: Why has the Bank of Japan not Adopted Inflation Targeting? | Conference – 2004
9 Aug 2004
Conferences
the real interest rate and depresses investment and consumption; and lower aggregate demand results in more deflation. ... A high real interest rate in a stagnant economy reduces corporations' incentives to invest to expand production.
https://www.rba.gov.au/publications/confs/2004/ito.html
It Takes More Than a Bubble to Become Japan | Conference – 2003
18 Aug 2003
Conferences
monetary ease by the M3 criterion and 11 periods of monetary ease by the real interest rate criterion. ... Alternatively, how could interest rates be expected to stay low indefinitely if the boom's euphoria was based on a real increase in the potential
https://www.rba.gov.au/publications/confs/2003/posen.html
Robust Design Principles for Monetary Policy Committees | Conference – 2018
12 Apr 2018
Conferences
For example, electricity producers and end users make forward-looking decisions that hinge on the rate structure and its expected path. ... In fact, one member even cast consecutive votes in favour of rate hikes.
https://www.rba.gov.au/publications/confs/2018/archer-levin.html