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Instead, they tend to look only at nominal interest rates.
From here the nominal interest rate can be solved for.
Nominal interest rates include all three risk factors, plus the time value of the money itself.
If the nominal interest rate is at or very near zero, the central bank cannot lower it further.
The nominal interest rate on 90-day Treasury bills was below 3 percent today.
The nominal interest rate on those bonds needs to be determined by Germany.
Most economists agree that nominal interest rates cannot fall below zero.
On a bright note, however, the report pointed out that inflation, nominal interest rates and oil prices were all low.
The amount of money demanded for transactions however is also likely to depend on the nominal interest rate.
Nominal interest rates are normally positive, but not always.
Policy traction is most difficult to achieve at low levels of inflation and nominal interest rates.
In contrast, the nominal interest rate is known in advance.
But this is much more rare: the nominal interest rate is negative.
The new Fed yardstick is the difference between the inflation rate and nominal interest rates.
It is misleading, however, to compare nominal interest rates.
The effect estimates future exchange rates based on the relationship between nominal interest rates.
Essentially, Friedman advocated setting the nominal interest rate at zero.
The recommendation structure of nominal interest rates is given below:
Like in the other motivations above, this creates a negative relationship between the nominal interest rate and the demand for money.
The relationship between real and nominal interest rates can be described in the equation:
It is important to understand nominal interest rate and real interest rate.
The nominal interest rate is the interest rate you hear about at your bank.
It emphasized the distinction between real and nominal interest rates:
Subjects selected the nominal interest rate to stabilize unemployment and inflation at low levels.
And allowing the dollar to fall would increase the inflation rate and nominal interest rates.