nominal interest rate

(redirected from Nominal Rates of Interest)
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nominal interest rate

the real rate of interest plus the anticipated rate of price inflation.
References in periodicals archive ?
In general, in the third and fourth sub-sample periods, nominal rates of interest, inflation and monetary growth rates reached average levels that were significantly below earlier peak levels, in all countries.
Only as they became convinced of sustained, lower rates of inflation, did they build these into lowered, expected rates of inflation and lower nominal rates of interest.
1985^ to generate a precautionary demand for cash balances, a demand exemplified by the possible coexistence of positive nominal rates of interest and a slack cash constraint on consumption purchases.
1970^ conclusion that if the primary disturbances to the economy are money demand shocks, then the optimal policy is to smooth nominal rates of interest.