Sentences with phrase «nominal interest rates caused»

Not exact matches

If the Bank of Canada does what it is supposed to do, and what it says it does, then a temporary increase in the fiscal deficit will cause a temporary rise in the nominal and real interest rate (and nominal and real exchange rate), relative to what would have happened otherwise.

President - elect Donald Trump's victory in the Nov. 8, 2016 election caused a reflation theme to emerge; the incoming administration's proposed infrastructure spending and tax reductions resulted in expectations of increased inflation and an upward shift in the anticipated path of nominal interest rates.

It's also important to distinguish nominal interest rate from real interest rate, which accounts for the erosion of buying power caused by inflation.