Sentences with phrase «making nominal interest»

Not exact matches

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.

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.

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.

Capital gains is a tax on your nominal gains, not real gains but you are making interest payments with real dollars.

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 %.

The fund manager charges a nominal annual fee on the assets from which the ETF is composed, and the investors whose stocks make up the funds receive a small interest charge in exchange for loaning those stocks.

Those making more will pay back their loans more quickly, accruing nominal interest; those making less will take longer, and will likely pay tens of thousands of dollars in interest alone.