The real interest rate is the rate of interest an investor, saver or lender receives (or expects to receive) after allowing for inflation. It can be described...

An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed (called the principal sum). The...

contrast with the real interest rate). Compound interest (also referred to as the nominal annual rate). The concept of real interest rate is useful to account...

Interest rate parity is a no-arbitrage condition representing an equilibrium state under which investors compare interest rates available on bank deposits...

representing future goods, that the real rate of interest is observed. Rothbard has said that Interest rate is equal to the rate of price spread in the various...

effective interest rate (EIR), effective annual interest rate, annual equivalent rate (AER) or simply effective rate is the percentage of interest on a loan...

The neutral rate of interest, previously called the natural rate of interest, is the real (net of inflation) interest rate that supports the economy at...

Zero interest-rate policy (ZIRP) is a macroeconomic concept describing conditions with a very low nominal interest rate, such as those in contemporary...

real interest rate is approximately the historical nominal interest rate minus inflation. Looking forward into the future, the expected real interest...

In the United States, the federal funds rate is the interest rate at which depository institutions (banks and credit unions) lend reserve balances to...

the real present value of their loan repayments), while they are worse off if there is a drop in inflation that lowers interest rates. Fixed-rate mortgages...

as effective annual percentage rate (EAPR), annual equivalent rate (AER), effective interest rate, effective annual rate, annual percentage yield and other...

In finance, an interest rate swap (IRS) is an interest rate derivative (IRD). It involves exchange of interest rates between two parties. In particular...

A variable-rate mortgage, adjustable-rate mortgage (ARM), or tracker mortgage is a mortgage loan with the interest rate on the note periodically adjusted...

interest rates (such as the federal funds rate in the United States), the overall economy is primarily affected by the long-term real interest rates charged...

nominal interest rates, real interest rates, and inflation. Named after Irving Fisher, an American economist, it can be expressed as real interest rate ≈ nominal...

rate of interest will see a reduction in the "real" interest rate as the inflation rate rises. The real interest on a loan is the nominal rate minus the...

yields a unique combination of the interest rate and real GDP. The IS curve shows the causation from interest rates to planned investment to national income...

rate) plus the inflation rate of the euro minus the inflation rate of the dollar. The Real Exchange Rate (RER) represents the nominal exchange rate adjusted...

proposed that the real interest rate is independent of monetary measures (known as the Fisher hypothesis), therefore, the nominal interest rate will adjust...

in the interest rate, inflation and output. The MP curve displays a positive relationship, upward-sloping curve, where the real interest rate is located...

such as prices, wages, and exchange rates, with no effect on real variables, like employment, real GDP, and real consumption. Neutrality of money is an...

appropriately setting short-term interest rates. The rule considers the federal funds rate, the price level and changes in real income. The Taylor rule computes...

thought to be related to investor expectations for the economy and interest rates. Ronald Melicher and Merle Welshans have identified several characteristics...

measure of responsiveness of the growth rate of consumption to the real interest rate. If the real interest rate rises, current consumption may decrease...

compare the change in purchasing power, the real interest rate (nominal interest rate minus inflation rate) should be used. The operation of evaluating...

exhibits the classical dichotomy if real variables such as output and real interest rates can be completely analyzed without considering what is happening...

generic term for a loan secured by such real property. As with other types of loans, mortgages have an interest rate and are scheduled to amortize over a...

percentage rate of charge (APR), corresponding sometimes to a nominal APR and sometimes to an effective APR (EAPR), is the interest rate for a whole...

It can be formalized as follows: I=f(r,ΔY,q) - + + where r is the real interest rate, Y the GDP and q is Tobin's q. The signs under the variables simply...