Search: Real interest rate

Sort by: Relevance Date
1–8 of 8 collapsed search results for 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 Effect of Steady Inflation on Interest Rates and the Real Exchange Rate in a World with Free Capital Flows

1 Feb 1991 RDP 9101
David W.R. Gruen
Research Discussion Papers contain the results of economic research within the Reserve Bank
https://www.rba.gov.au/publications/rdp/1991/9101.html

The Effect of Steady Inflation on Interest Rates and the Real Exchange Rate in a World with Free Capital Flows

1 Feb 1991 RDP 9101
David W. R. Gruen
Research Discussion Paper – RDP 9101 The Effect of Steady Inflation on Interest Rates and the Real Exchange Rate in a World with Free Capital Flows.
https://www.rba.gov.au/publications/rdp/1991/9101/

Introducing Uncertainty

1 Feb 1991 RDP 9101
David W.R. Gruen
RDP 9101: The Effect of Steady Inflation on Interest Rates and the Real Exchange Rate in a World with Free Capital Flows 3. ... where, as before, r is the domestic short-term pre-tax real interest rate.
https://www.rba.gov.au/publications/rdp/1991/9101/introducing-uncertainty.html

Discussion

1 Feb 1991 RDP 9101
David W.R. Gruen
RDP 9101: The Effect of Steady Inflation on Interest Rates and the Real Exchange Rate in a World with Free Capital Flows 4. ... Instead, international investors ensure that the domestic pre-tax real interest rate is equal to the world pre-tax real rate.
https://www.rba.gov.au/publications/rdp/1991/9101/discussion.html

Appendix

1 Feb 1991 RDP 9101
David W.R. Gruen
RDP 9101: The Effect of Steady Inflation on Interest Rates and the Real Exchange Rate in a World with Free Capital Flows Appendix. ... after-tax real interest rate offsets the output effect of the real appreciation.
https://www.rba.gov.au/publications/rdp/1991/9101/appendix.html

Introduction

1 Feb 1991 RDP 9101
David W.R. Gruen
When this happens, foreign lenders will be aware of two things: that domestic real interest rates are relatively high, and that the domestic real exchange rate is over-valued (compared with ... Secondly, the high domestic real interest rates would not
https://www.rba.gov.au/publications/rdp/1991/9101/introduction.html

References

1 Feb 1991 RDP 9101
David W.R. Gruen
RDP 9101: The Effect of Steady Inflation on Interest Rates and the Real Exchange Rate in a World with Free Capital Flows References. ... 171. Smith, J. and Gruen, D.W.R. (1989), ‘A random walk around the $A: expectations, risk, interest rates and
https://www.rba.gov.au/publications/rdp/1991/9101/references.html

The Model when the Future is Certain

1 Feb 1991 RDP 9101
David W.R. Gruen
RDP 9101: The Effect of Steady Inflation on Interest Rates and the Real Exchange Rate in a World with Free Capital Flows 2. ... In equilibrium, Dl = Dc = 0, and these conditions allow the equilibrium domestic levels of interest rates, real balances and
https://www.rba.gov.au/publications/rdp/1991/9101/model-when-the-future-is-certain.html