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nominal interest rate
(redirected from Nominal Interest Rates)

   Also found in: Financial, Wikipedia 0.01 sec.
nominal interest rate
the real rate of interest plus the anticipated rate of price inflation.


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Further disinflation with short-term nominal interest rates at zero would mean rising real interest rates in the face of a slowing pace of recovery," Bullard said.
The authors of the 2001 paper--Jess Benhabib at New York University and Stephanie Schmitt-Grohe and Martin Uribe both now at Columbia University--studied abstract economies in which the monetary policymaker follows an active Taylor-type monetary policy rule--that is, the policymaker changes nominal interest rates more than one for one when inflation deviates from a given target.
Examination of data in Figure 1 indicates that nominal interest rates in Nigeria have not been stable in recent times, except for years before 1986 when deregulation policy was adopted.
 
 
 
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