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.
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The Term Structure of Interest Rates, Real Activity and Inflation
1 May 1992
RDP
9204
Research Discussion Papers contain the results of economic research within the Reserve Bank
https://www.rba.gov.au/publications/rdp/1992/9204.html
Theory
1 May 1992
RDP
9204
RDP 9204: The Term Structure of Interest Rates, Real Activity and Inflation 2. ... Consequently, steady state real interest rates and output do not change in response to the monetary expansion.
https://www.rba.gov.au/publications/rdp/1992/9204/theory.html
Introduction
1 May 1992
RDP
9204
RDP 9204: The Term Structure of Interest Rates, Real Activity and Inflation 1. ... If prices adjust instantaneously to monetary shocks, monetary policy should have no effect on real outcomes including real interest rates.
https://www.rba.gov.au/publications/rdp/1992/9204/introduction.html
Summary and Conclusions
1 May 1992
RDP
9204
RDP 9204: The Term Structure of Interest Rates, Real Activity and Inflation 5. ... Taken together, the results on activity and inflation are consistent with monetary policy having effects on real interest rates through price stickiness.
https://www.rba.gov.au/publications/rdp/1992/9204/summary-and-conclusions.html
The Term Structure of Interest Rates, Real Activity and Inflation
1 May 1992
RDP
9204
Research Discussion Paper – RDP 9204 The Term Structure of Interest Rates, Real Activity and Inflation.
https://www.rba.gov.au/publications/rdp/1992/9204/
Appendix 2: Derivation of Dynamics
1 May 1992
RDP
9204
RDP 9204: The Term Structure of Interest Rates, Real Activity and Inflation Appendix 2: Derivation of Dynamics. ... t. ). This yields:. The larger is θ, the quicker the output and interest rate responses reach their maxima.
https://www.rba.gov.au/publications/rdp/1992/9204/appendix-2.html
Appendix 1: Data
1 May 1992
RDP
9204
RDP 9204: The Term Structure of Interest Rates, Real Activity and Inflation Appendix 1: Data. ... In the inflation change regressions, the three end-month interest rates are averaged for the quarter while, in the activity regressions, the interest rate
https://www.rba.gov.au/publications/rdp/1992/9204/appendix-1.html
Appendix 3: Forecasting Ability of Selected Yield Spreads
1 May 1992
RDP
9204
RDP 9204: The Term Structure of Interest Rates, Real Activity and Inflation Appendix 3: Forecasting Ability of Selected Yield Spreads. ... 3. γ. t. is real seasonally adjusted GDP at time t.
https://www.rba.gov.au/publications/rdp/1992/9204/appendix-3.html
References
1 May 1992
RDP
9204
RDP 9204: The Term Structure of Interest Rates, Real Activity and Inflation References. ... Download the Paper 439. KB. Bernanke, Ben S., “On The Predictive Power of Interest Rates and Interest Rate Spreads”, New England Economic Review, 1990,
https://www.rba.gov.au/publications/rdp/1992/9204/references.html
The Yield Curve and Changes in Inflation
1 May 1992
RDP
9204
RDP 9204: The Term Structure of Interest Rates, Real Activity and Inflation 4. ... However, failure of the real interest rate spread to be a constant allows the possibility of superior forecasts of future changes in the inflation rate being generated by
https://www.rba.gov.au/publications/rdp/1992/9204/yield-curve-and-changes-in-inflation.html