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RBA Glossary definition for Nominal interest rate

Nominal interest rate – The nominal interest rate refers to the cost of borrowing money before adjustment for inflation i.e. it includes compensation for the expected erosion of the value of the borrowed funds due to inflation. It is the cost visible to the borrower, and is composed of the real interest rate plus inflation.

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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Long-term Interest Rates, Risk Premia and Unconventional Monetary Policy

12 Apr 2011 RDP 2011-02
Callum Jones and Mariano Kulish
Research Discussion Papers contain the results of economic research within the Reserve Bank
https://www.rba.gov.au/publications/rdp/2011/2011-02.html

Dynamics

31 Dec 2011 RDP 2011-02
Callum Jones and Mariano Kulish
Under both rules, output, inflation, and nominal interest rates rise for the first few periods. ... Battellino (2009) notes how the Reserve Bank of Australia has taken into account interest rate spreads, which capture risk premia, in setting interest
https://www.rba.gov.au/publications/rdp/2011/2011-02/dynamics.html

Announcements and Transitions

31 Dec 2011 RDP 2011-02
Callum Jones and Mariano Kulish
The middle right panel shows the response of the long-term nominal interest rate, R. ... Ugai (2006) argues that in Japan, a commitment to maintain zero interest rates is likely to impact on the risk premium between the short-term interest rate and the
https://www.rba.gov.au/publications/rdp/2011/2011-02/anno-transitions.html

References

31 Dec 2011 RDP 2011-02
Callum Jones and Mariano Kulish
Available at <http://www.federalreserve.gov/newsevents/speech/bernanke20090113a.htm>. Bodenstein M, J Hebden and R Nunes (2010), ‘Imperfect Credibility and the Zero Lower Bound on the Nominal Interest Rate’, Board ... 12(3), pp 383–398. Clouse J, D
https://www.rba.gov.au/publications/rdp/2011/2011-02/references.html

Introduction

31 Dec 2011 RDP 2011-02
Callum Jones and Mariano Kulish
One possibility is for the central bank to purchase long-term securities in order to push down longer-term nominal interest rates. ... interest rates as operating instruments of monetary policy and announcements about the future path of the short-term
https://www.rba.gov.au/publications/rdp/2011/2011-02/introduction.html

Conclusions

31 Dec 2011 RDP 2011-02
Callum Jones and Mariano Kulish
One takes long-term nominal interest rates as operating instruments of monetary policy. ... The other considers credible announcements about the future path of short-term nominal interest rates.
https://www.rba.gov.au/publications/rdp/2011/2011-02/conclusions.html

Model

31 Dec 2011 RDP 2011-02
Callum Jones and Mariano Kulish
Download the Paper 519. KB. In a standard log-linear New Keynesian model, long-term interest rates would be determined solely by the expected path of the short rate. ... One can show that the nominal interest rate in period t associated with a
https://www.rba.gov.au/publications/rdp/2011/2011-02/model.html

Appendix A: The Linearised Equations

31 Dec 2011 RDP 2011-02
Callum Jones and Mariano Kulish
RDP 2011-02: Long-term Interest Rates, Risk Premia and Unconventional Monetary Policy Appendix A: The Linearised Equations. ... is the long-term real interest rate,. is the nominal long-term interest rate and π.
https://www.rba.gov.au/publications/rdp/2011/2011-02/appendix-a.html