Not exact matches
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.
The
nominal interest
rate, also
called the annualized percentage
rate (APR), is the annual interest you pay for... read more»
Most bonds have an interest
rate, also
called the coupon or
nominal rate, applied to the par value that the bond issuer will pay to the bondholder on a semiannual basis.
Calculating the effect of inflation on the interest
rate of a loan results in a figure
called the real interest
rate, which is roughly equal to the difference between a loan's advertised interest
rate,
called the
nominal rate, and the
rate of inflation:
Debit: Meanwhile, Fed Chairman Ben Bernanke's latest round of gratuitous money printing increased inflation fears this week as evidenced by the so -
called break - even
rate between
nominal and inflation - protected Treasury debt; it reached its highest level since 2006.
Investors seem to have a problem that I
call the money illusion: the inability to clearly understand the difference between real and
nominal rates.
The annual percentage
rate, usually shown next to the advertised and
called «APR», or
nominal, interest
rate, is always higher than the actual, or effective, loan interest
rate because it annualizes the fees and costs associated with the loan.
The
nominal interest
rate, also
called the annualized percentage
rate (APR), is the annual interest you pay for debt or receive for savings before accounting for inflation.