Nominal Interest Rates

An increase in nominal money growth decreases nominal interest rates in the short run, but increase them in the long run.

This is not so much in respect of the equalisation in price of capital in terms of nominal interest rates.

In Chapter 12 of the GT (p. 142) he completely fails to understand how the Fisher effect can raise nominal interest rates.

Although the purchasing power of savings continues to increase, low nominal interest rates are not good news for the small depositor.

On the contrary, real and nominal interest rates have declined and implied inflation expectations are below 2. 5 per cent a year.

Unfortunately, given low eurozone nominal interest rates and their buoyant economies, deficit countries had very low real rates of interest.

One consequence of this prolonged fight is that nominal interest rates have been raised off the floor.

From this perspective, monetary policy was the key driver of rapid NGDP growth, high trend inflation, and high nominal interest rates.

With nominal interest rates offered by the banks very low, and inflation rising, savers are taking a huge beating.

However the value of the dollar should certainly have fallen, while nominal interest rates should have risen.

This might imply nominal interest rates significantly above 6 per cent for an uncomfortably long period.

But they did nothing about it; indeed, by keeping nominal interest rates low, they encouraged the credit excesses.

Even Professor McKinnon's proposed 2 per cent nominal interest rates are still low by historical standards.

Granted, nominal interest rates can't fall much further.

This then has delivered low nominal interest rates.

German private bank Berenberg says surprises from oil prices and upbeat growth will lead to higher nominal interest rates.

If nominal interest rates are stuck at zero, the real interest rate and burden of debt both rise.

This is necessary when nominal interest rates get very low, as they are now, because Fed policy becomes impotent.

The study shows that the nominal interest rates are fit to be the inflation indicator of our country.

Can Nominal Interest Rates Be Used as the Inflation Indicator of Our Country?

Financial Institutions: Nominal Interest Rates on Deposits

low inflation-risk and credit-risk premiums and so low nominal interest rates;