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
Parameters of Money Demand, Own Rates and the Effectiveness of Intermediate Targets
1 May 1987
RDP
8703
Where own rate effects are present, containing the growth of a monetary aggregate in the face of inflation pressures would be more likely to be associated with rising real interest rates. ... rates. However, interactions are such that real interest rate
https://www.rba.gov.au/publications/rdp/1987/8703/parameters-of-money-demand-own-rates-and-the-effectiveness-of-intermediate-targets.html
Money Demand, Own Interest Rates and Deregulation
1 May 1987
RDP
8703
Research Discussion Papers contain the results of economic research within the Reserve Bank
https://www.rba.gov.au/publications/rdp/1987/8703.html
Concluding Remarks
1 May 1987
RDP
8703
To avoid a sharp downturn in money growth, real interest rate cuts would be needed. ... This could lead to increased money demand at a time when the economy was turning down and real interest rates were increasing.
https://www.rba.gov.au/publications/rdp/1987/8703/concluding-remarks.html
Introduction
1 May 1987
RDP
8703
The relationship between money and variables influencing demand (such as real income, the price level and interest rates) must be predictable if money growth rates are to convey information to policy ... Real interest rates affect economic activity.
https://www.rba.gov.au/publications/rdp/1987/8703/introduction.html
The Stability of Money Demand
1 May 1987
RDP
8703
The independent variables were real income, Y, the two-year government bond rate, R, and constructed own interest rates for M3 and BM, R. ... Consider first the interest rate terms. Collinearity problems preclude the inclusion of a spectrum of rates.
https://www.rba.gov.au/publications/rdp/1987/8703/the-stability-of-money-demand.html