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.
Search Results
The Rise in US Household Indebtedness: Causes and Consequences | Conference – 2007
20 Aug 2007
Conferences
In particular, when inflation is lower the same real interest rate will be associated with a lower nominal interest rate, which means that the ratio of nominal interest payments to nominal ... Moreover, these models imply that movements in real interest
https://www.rba.gov.au/publications/confs/2007/dynan-kohn.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
Credibility, Flexibility and Renewal: The Evolution of Inflation Targeting in Canada | Conference – 2018
12 Apr 2018
Conferences
The depth and length of the ensuing Great Recession only intensified this scrutiny, and important economic developments – primarily lower equilibrium real interest rates and relatively high debt burdens in certain sectors – ... Canadian interest
https://www.rba.gov.au/publications/confs/2018/carter-mendes-schembri.html
The Economics of Shadow Banking | Conference – 2013
19 Aug 2013
Conferences
B. and decreasing the real interest rate (Figure 4). In recent years, QE efforts have shifted the LM curve to the right to accommodate this decline, until the LM curve eventually ... A. The LM shift due to QE is sizeable (and continuing) and, combined
https://www.rba.gov.au/publications/confs/2013/singh.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
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
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
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
How Will Ageing Affect the Structure of Financial Markets? | Conference – 2006
23 Jul 2006
Conferences
advanced economies implicitly affecting the real interest rate or the risk premium. ... prices, and associated high real interest rates.
https://www.rba.gov.au/publications/confs/2006/davis.html