Search: Real interest rate

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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

Risk Effects Versus Monetary Effects in the Determination of Short-term Interest Rates

1 Oct 1987 RDP 8708
Malcolm L. Edey
Research Discussion Papers contain the results of economic research within the Reserve Bank
https://www.rba.gov.au/publications/rdp/1987/8708.html

Interest rates in a sticky-price monetary model

1 Oct 1987 RDP 8708
Malcolm L. Edey
Interest rates in a sticky-price monetary model. Malcolm L. Edey. October 1987. ... the asterisk denotes an expected steady state equilibrium value. This function can be thought of as a standard money demand function, except that the real interest rate
https://www.rba.gov.au/publications/rdp/1987/8708/interest-rates-in-a-sticky-price-monetary-model.html

Empirical Results

1 Oct 1987 RDP 8708
Malcolm L. Edey
consumption. growth rate. calendar year. Mid-year 3-month real interest rate. (ex post). ... Quarterly National Accounts. ). (b) Real interest rates are rate on three month Eurocurrency deposits, maturing July (Source: Financial Times) less three-month
https://www.rba.gov.au/publications/rdp/1987/8708/empirical-results.html

Conclusions

1 Oct 1987 RDP 8708
Malcolm L. Edey
In examining the time series data on short-term interest rates, both nominal and real, one of the features most immediately apparent is the high degree of serial correlation in these ... determinant of the real interest rate in the consumption risk model,
https://www.rba.gov.au/publications/rdp/1987/8708/conclusions.html

Interest rates in a model of intertemporal optimisation

1 Oct 1987 RDP 8708
Malcolm L. Edey
RDP 8708: Risk Effects Versus Monetary Effects in the Determination of Short-Term Interest Rates 2. ... Download the Paper 452. KB. This section uses the intertemporal asset pricing model of Lucas (1978) to derive empirically testable equations for the
https://www.rba.gov.au/publications/rdp/1987/8708/interest-rates-in-a-model-of-intertemporal-optimisation.html

Introduction

1 Oct 1987 RDP 8708
Malcolm L. Edey
Real interest rates during this period have varied over a much wider range than it seems can be explained by variations in expectations or in systematic risk factors. ... of real interest rates over time.
https://www.rba.gov.au/publications/rdp/1987/8708/introduction.html

References

1 Oct 1987 RDP 8708
Malcolm L. Edey
RDP 8708: Risk Effects Versus Monetary Effects in the Determination of Short-Term Interest Rates References. ... Download the Paper 452. KB. Blanchard, O.J. (1981) “Output, the Stock Market and Interest Rates”,.
https://www.rba.gov.au/publications/rdp/1987/8708/references.html