Not exact matches
Withdrawls from tax deferred accounts will generally
make your Social Security taxable at your
nominal rate, say 25 % Federal.
Most people would accept that the relevant interest
rate here should be a real interest
rate — some
nominal interest
rate adjusted for the ex-ante expected inflation
rate of the person
making the decision.
There are so many reasons why this is wrong (to list just the most obvious, poor countries have much lower debt thresholds than rich countries, Japanese debt can not possibly be dismissed as not being a problem, and because it is almost impossible to find an economist who understands the relationship between
nominal interest
rates and implicit amortization, Japanese government debt has probably only been manageable to date because GDP growth close to zero has permitted interest
rates close to zero) and yet inane comparisons between China's debt burden and Japan's debt burden are
made all the time.
While there are some signs of recognition such as the Fed's reduction in its estimated neutral
rate from 4.5 percent to 3.0 percent during the last 2 years, the IMF's explicit use of the term secular stagnation in its World Economic Outlook, ECB president Mario Draghi's call for global coordination and greater use of fiscal policy, and Japan's indicated interest in fiscal - monetary cooperation, policymakers still have not
made sufficiently radical adjustments in their world view to reflect this new reality of a world where generating adequate
nominal GDP growth is likely to be the primary macroeconomic policy challenge for the next decade.
It seems to me that two countries with a price level target will effectively have a
nominal exchange
rate target, which could
make for interesting interactions between foreign and domestic mon pol.
Higher
rates effected performance, but
nominal returns were still positive because eventually investors were able to
make up for the price losses through the increases in yield.
This could include setting targets for
nominal GDP growth rather than inflation, investing in a wider range of risk assets,
making plans to allow base
rates to turn negative, and underscoring the importance of avoiding a new recession.
Sure, rising
nominal rates have tended to
make the metal less attractive, since it doesn't pay an income, but the larger driver by far are real interest
rates.
If she had added: «Plus, even though we are currently above the Effective Lower Bound on
nominal interest
rates (which is probably below 0 %) we are worried that the margin of safety is getting a bit small, and are pleased that fiscal policy is
making that margin of safety a bit bigger than it otherwise would be» that would also be an internally consistent thing for the Bank of Canada to say.
Computations of real interest
rates should really be
made by deducting an expectation of future, rather than past, inflation from the relevant
nominal interest
rate.
Comparisons have to proceed from the (
nominal or effective) tax
rates for a given bracket / income, the fact that a given share of revenue comes from the richest doesn't
make a system progressive.
The engine hasn't grown from 1.5 liters since the Fit's introduction, but the second generation mill
made welcome the somewhat
nominal horsepower and torque gains, up to 117 and 106 respectively, while also upping its eco-status with an emission -
ratings bump from LEV II to ULEV II.
The other terms and conditions for fixed interest
rate loans, such as
making interest only payments or
nominal $ 25 payments while in school, are the same as for variable
rate loans.
The Points concept can become very confusing, and it works sometimes the other way round (you get a slightly higher
nominal interest
rate, and some cash in hand to
make up for it)
In real - world situations, such as evaluating the life of a mortgage contract, finding the effective interest
rate requires knowing the principal amount, or the amount to be financed; the
nominal interest
rate; any additional loan fees or charges; the number of times each year the loan is compounded; and the number of payments to be
made each year.
Think of 1979 - 82: by the time bond yields were nearing their peak levels, bond managers were
making money in
nominal terms with
rates rising because the income from the coupons was so high, and it set up the tremendous rally in bonds that would last for ~ 30 years or so.
Example: If the
nominal annual interest
rate is i = 7.5 %, and the interest is compounded semi-annually (n = 2), and payments are
made monthly (p = 12), then the
rate per period will be r = 0.6155 %.
And, has
made made nominal rates negative for some very short instruments inside 6 months of maturity.
Manufacturer: Sony Resolution: 1920x1080 (960x1080 per eye) Refresh
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made.
However, serious departures occur if the O3 changes are introduced near surface layers when the lapse
rate change, together with cloud feedbacks,
make the climate sensitivity quite different from the
nominal values.