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
Appendix A: A Small Macroeconomic Model of Australia
31 Dec 2002
RDP
2002-01
f. is the G3 real interest rate. ... where the equilibrium G3 real interest rate is 2 per cent and the equilibrium world inflation rate is 2.5 per cent.
https://www.rba.gov.au/publications/rdp/2002/2002-01/appendix-a.html
Evidence from a Small Empirical Macro Model
31 Dec 2002
RDP
2002-01
As in the Ball-Svensson model, there are two channels of transmission of monetary policy to output: directly through changes in the real interest rate (with a six-quarter lag) and ... The real exchange rate is explained by movements in the terms of trade
https://www.rba.gov.au/publications/rdp/2002/2002-01/evidence-from-a-small-empirical-macro-model.html
Which Inflation Rate to Target in an Open Economy?
31 Dec 2002
RDP
2002-01
where y is the output gap, r the real policy interest rate, e the exchange rate and π inflation. ... The third equation implies that the exchange rate appreciates in response to a rise in domestic interest rates.
https://www.rba.gov.au/publications/rdp/2002/2002-01/which-inflation-rate-to-target-in-an-open-economy.html