Search: Real interest rate

Sort by: Relevance Date
1–9 of 9 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

A Random Walk Around the : Expectations, Risk, Interest Rates and Consequences for External Imbalance

1 Oct 1989 RDP 8906
Jeremy Smith and David W.R. Gruen
Research Discussion Papers contain the results of economic research within the Reserve Bank
https://www.rba.gov.au/publications/rdp/1989/8906.html

Inflation and Interest Rates

1 Oct 1989 RDP 8906
Jeremy Smith and David W.R. Gruen
The expected short-term real interest rate differential between each country j and the US, r. ... An alternative measure of expected real interest rates can be derived using the realized inflation rate during the ex post 3 month period as a proxy for
https://www.rba.gov.au/publications/rdp/1989/8906/inflation-and-interest-rates.html

Discussion

1 Oct 1989 RDP 8906
Jeremy Smith and David W.R. Gruen
4% p.a.) while the actual rate appreciated. Secondly, since late 84 (late 85), Australian ex post short-term real interest rates have been at an average premium of 2.4% ... high real interest rates on these assets since late 84 (or late 85).
https://www.rba.gov.au/publications/rdp/1989/8906/discussion.html

Introduction

1 Oct 1989 RDP 8906
Jeremy Smith and David W.R. Gruen
The arbitrage condition for a representative US investor can be expressed either in terms of nominal or real interest rates. ... Thus,. where i and r denote the nominal and real interest rates for some asset, S is the nominal $US/$A exchange rate, ΔS is
https://www.rba.gov.au/publications/rdp/1989/8906/introduction.html

The Risk Premium

1 Oct 1989 RDP 8906
Jeremy Smith and David W.R. Gruen
RDP 8906: A Random Walk Around the $A: Expectations, Risk, Interest Rates and Consequences for External Imbalance III. ... where, S is the spot exchange rate, S = $US/$A. Defining δ by.
https://www.rba.gov.au/publications/rdp/1989/8906/risk-premium.html

Skewness

1 Oct 1989 RDP 8906
Jeremy Smith and David W.R. Gruen
RDP 8906: A Random Walk Around the $A: Expectations, Risk, Interest Rates and Consequences for External Imbalance V. ... The debt/GDP ratio will increase (potentially without bound) if net exports are in deficit (as they are in Australia) and if the
https://www.rba.gov.au/publications/rdp/1989/8906/skewness.html

Data Appendix

1 Oct 1989 RDP 8906
Jeremy Smith and David W.R. Gruen
Other short-term interest rates and foreign CPI are from IMF International Financial Statistics (IFS). ... To evaluate ex post 3 month real interest rates, we used the average yield on Australian 3 month Treasury bills for the last tender in each quarter
https://www.rba.gov.au/publications/rdp/1989/8906/data-appendix.html

References

1 Oct 1989 RDP 8906
Jeremy Smith and David W.R. Gruen
1988), ‘Was it real? The exchange rate – interest differential relation over the modern floating-rate period’,. ... 1988), ‘Risk premiums – implications for the exchange rate and interest rates in Australia since 1984’, ABARE manuscript.
https://www.rba.gov.au/publications/rdp/1989/8906/references.html

Appendix B

1 Oct 1989 RDP 8906
Jeremy Smith and David W.R. Gruen
RDP 8906: A Random Walk Around the $A: Expectations, Risk, Interest Rates and Consequences for External Imbalance Appendix B. ... be negliglible – compared, for example, to the average short-term real interest differential between Australia and the US
https://www.rba.gov.au/publications/rdp/1989/8906/appendix-b.html