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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Expectations and the Neutrality of Interest Rates
27 Nov 2023
Conferences
PDF
477KB
RBA Annual Conference 2023
https://www.rba.gov.au/publications/confs/2023/pdf/rba-conference-2023-cochrane.pdf
Financial-asset Prices and Monetary Policy: Theory and Evidence | Conference – 1997
21 Jul 1997
Conferences
According to Equation (2), aggregate demand depends negatively on the expected real interest rate (r. ... Indeed, simulations with macroeconometric models suggest that exchange-rate changes have more immediate effects on real economic activity than
https://www.rba.gov.au/publications/confs/1997/smets.html
The Welfare Effects of Alternative Choices of Instruments and Targets for Macroeconomic Stabilisation Policy | Conference – 1997
21 Jul 1997
Conferences
A policy that stabilises some measure of the inflation rate but destabilises real interest rates must reduce welfare. ... The difficulty of determining the equilibrium real interest rate is exacerbated by the difficulty of forecasting future inflation
https://www.rba.gov.au/publications/confs/1997/quiggin.html
Discussion of Gazing at r*: A Hysteresis Perspective
29 Dec 2022
Conferences
PDF
799KB
RBA Annual Conference 2022
https://www.rba.gov.au/publications/confs/2022/pdf/rba-conference-2022-beaudry-kartashova-meh-discussion.pdf
The Cost of Inflation in Australia | Conference – 1992
10 Jul 1992
Conferences
Thus, we are interested in the relationship between inflation and real interest rates. ... where r is the anticipated real interest rate, i the nominal interest rate and π the anticipated rate of inflation.
https://www.rba.gov.au/publications/confs/1992/mctaggart.html
The Transmission of Monetary Policy through Banks' Balance Sheets | Conference – 2018
12 Apr 2018
Conferences
risk that future short-term interest rates will not turn out as expected (interest rate risk). ... The effect of the cash rate on provisioning rates may diminish at low interest rates.
https://www.rba.gov.au/publications/confs/2018/brassil-cheshire-muscatello.html
The Balance of Payments | Conference – 1990
21 Jun 1990
Conferences
Also, if Ricardian equivalence holds closely, why have long-term real interest rates fallen for most of the period of the fiscal consolidation? ... appreciation. During most of this period long-term real interest rates in Australia were relatively high.
https://www.rba.gov.au/publications/confs/1990/tease.html
Discussion of Fiscal, Monetary and Macroprudential Regimes: Incentives-Values Compatibility in Constitutional Democracies and Global Trends …
29 Dec 2022
Conferences
PDF
84KB
RBA Annual Conference 2022
https://www.rba.gov.au/publications/confs/2022/pdf/rba-conference-2022-tucker-del-negro-discussion.pdf
Introduction | Conference – 1997
21 Jul 1997
Conferences
One interesting feature of this approach, and of the simple interest-rate rules, is that it generates considerably greater variability in short-term official interest rates than has been seen in ... in the management of the business cycle and that real
https://www.rba.gov.au/publications/confs/1997/intro-97.html
Discussion on The Smoothing of Official Interest Rates | Conference – 1997
21 Jul 1997
Conferences
First, lengthen the lag in the effect of the real interest rate on the output gap in his dynamic IS curve to derive. ... Should policy aim at smoothing nominal or real interest rates? Would greater volatility in short-term interest rates imply greater
https://www.rba.gov.au/publications/confs/1997/lindsey-disc.html