Nominal and Real Interest Rates, 1986-88
Three questions concerning nominal and real interest rates
... When the federal deficit was used, neither fiscal nor monetary policy was estimated to have contributed much to the behavior of the real rate over the same period.. ApPENDIX.[r] ...
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Real and Nominal UK Interest Rates, ERM Membership and Inflation Targeting
... the real short rate and its central tendency, ...the real rate is larger during the inflation targeting period than during the ERM period, but for the variability of the real rate the opposite is the ...
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The Inflation Premium Implicit in the US Real and Nominal Term Structures of Interest Rates
... discounted value of their coupon and principal payments. Appendix 2 gives details of the computation. The Wall Street Journal, the Bloomberg Screen and Website 7 and, most recently, the Federal Reserve Bank of St. Louis ...
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Decomposing U.S. Nominal Interest Rates into Expected Inflation and Ex Ante Real Interest Rates Using Structural VAR Methodology
... It is particularly important to include a sufficient number of lags in the VAR. Monte Carlo simulations carried on by DeSerres and Guay (1995) show that using a lag structure that is too parsimonious can significantly ...
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Negative nominal interest rates: History and current proposals
... basic interest to the wares’ (Gesell, 1958, ...the real interest earned on money, while lowering it on real capital assets, disinvestment takes place, reducing general ...
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Monetary Policy and the Zero Bound on Nominal Interest Rates
... “low” interest rate policy even after rates rise from the zero ...the real world, a number of central banks implemented the idea of forward guidance or conditional commitment but in a different ...
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The optimal inflation buffer with a zero bound on nominal interest rates
... after real and nominal interest rates have returned to their respective average ...than real and nominal interest rates, to its long-run average ...
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The Optimal Quantity of Money Consistent with Positive Nominal Interest Rates
... the nominal interest rate be zero and thereby the rate of inflation be negative (see ...say, nominal interest and inflation rates actually have been positive in most countries and in ...
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Risk Premium Shocks and the Zero Bound on Nominal Interest Rates
... average real risk-free rate lead to a few changes in parameter cal- ...lower real risk-free ...average real risk-free rate is closer to zero, there is less room for the rate to adjust ...
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The Optimal Quantity of Money Consistent with Positive Nominal Interest Rates
... the nominal interest rate be zero and thereby the rate of inflation be negative (see ...say, nominal interest and inflation rates actually have been positive in most countries and in ...
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The Optimal Inflation Buffer with a Zero Bound on Nominal Interest Rates
... after real and nominal interest rates have returned to their respective average ...than real and nominal interest rates, to its long-run average ...
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Nominal Bonds and Interest Rates: The Case of One-Period Bonds
... on real output/consumption or the nominal interest ...model, real output and government consumption increase in response to the tightening operation, while private consumption and government ...
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The Zero Bound on Nominal Interest Rates: Implications for Monetary Policy
... Canada’s strong economic performance since the adoption of a 2 per cent inflation target raises the question of whether the Bank of Canada should lower the target further. Even when measurement error is factored into the ...
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Negative Nominal Interest Rates Can Worsen Liquidity Traps
... of interest are enough to calculate the effect of NIRP, but extensions of the model can both raise and lower the NIRP required to eliminate liquidity ...that real wage rigidities have the opposite effect on ...
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Real interest rates and inflation in Norway
... the real interest rate averaged over the whole business cycle, should approximate the neutral real interest rate because the positive and negative real interest rate gaps cancel ...
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Money, interest rates and the real activity
... lower nominal interest rate on sav- ing, subject to monetary expansion, without the limited participation monetary shock assumption from Lucas ...decreasing nominal interest rate with monetary ...
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Nominal rates of interest and discount
... Then the net present value at rate i of investment returns by the discounted cash flow technique is denoted be P (i) and is... Stated in words:..[r] ...
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Nominal interest rates and the news
... shapes of revisions on policy days points to independent sources of interest rate movements. The finding that policy news is multidimensional is consistent with the results of G¨ urkaynak et al. (2005a), who ...
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The lower bounds on nominal interest rates
... policy rates of central banks differ from each other and the variety of arrange- ments is ...overnight interest rate paid on commercial bank reserves with the Bank of ...of interest at which banks ...
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Chapter 4 Nominal and Effective Interest Rates
... Often the frequency of cash flows doesn’t equal the frequency of interest compounding. To correctly perform any equivalence computation, it is essential that the payment period and compounding period be placed on ...
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