nominal interest rate

(redirected from Nominal Rates of Interest)
Also found in: Financial.

nominal interest rate

the real rate of interest plus the anticipated rate of price inflation.
References in periodicals archive ?
Do nominal rates of interest change with inflation expectations, changes in expected real rates of interest or both?
In general, there is evidence of a potentially greater role played by the real rate of interest in explaining the significantly higher average nominal rates of interest observed during the second sub-sample period.
We did note some inflation rate sensitivity, but, during the period of study, we were unable to find appreciable sensitivity to nominal rates of interest, perhaps because of the pattern of decreasing inflation was offset somewhat by the increasing real rates that transpired during the period.
1) These liquidity models are something of a growth industry, partly because they are potentially consistent with a monetary equilibrium in which monetary injections drive down nominal rates of interest and stimulate real activity--stylized facts supported by evidence presented in, for example, Christiano and Eichenbaum