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Discover Latest #Real interest News, Articles and Videos with Contenting
Real interest rate is the rate of interest an investor, saver or lender receives (or expects to receive) after allowing for inflation. It can be described more formally by the Fisher equation, which states that the real interest rate is approximately the nominal interest rate minus the inflation rate. Real interest rates are important because they measure the real return on investments. They are used to compare the effectiveness of investments in different countries, since the nominal interest rate does not take into account the effect of inflation. 1. "Real Interest Rates: A Primer" This article provides an overview of real interest rates, including how to calculate them, their importance, and their impact on investments. It also discusses the different types of real interest rates and their uses. 2. "What is the Real Interest Rate?" This article explains what the real interest rate is and why it matters. It also provides an overview of how real interest rates are calculated and used. 3. "Real Interest Rates: What Investors Need to Know" This article provides an overview of real interest rates and their importance for investors. It discusses how to calculate real interest rates, their impact on investments, and their uses.
A matching framework with neither evidence nor theory on its side - Marginal REVOLUTION
Imagine if the relevant “change variable,” in macro terms, was the ease and quality of matching. In some mini-eras, matching does not work very well. The labor market is slow, real interest rates are low, and capital is very cheap. It is thus relatively easy for super-talented people — who often become quite wealthy — […]
Higher rates for longer a test for US equities - ForexTV
Still, JPMorgan says the US sharemarket faces valuation risk from “higher for longer” rates. A 16 per cent year-to-date rise in the S&P 500 was driven by valuation. But real interest rates and the … Read Full Story at source (may require registration)
middle east: Gold gains for second consecutive week as Middle-East tension intensifies - The Economic Times
The decline in ETF activity is linked to rising real interest rates in the US, which reached a 15-year high of 2.47% for 10-year TIPS. This trend has diminished the appeal of non-yielding gold, indicating that the recent 9% increase in gold prices since October 6th was primarily due to speculative safe-haven demand
gold price: Gold price at record high: What’s fuelling the surge? - The Economic Times
The relationship between the US dollar and gold is often characterized by an inverse correlation. When the US dollar weakens, gold prices tend to rise and vice versa. Earlier, gold prices in the international markets were primarily driven by real interest rates. Robust US economic release boosted bets of higher-for-longer rates which ended up lifting the US currency and bond yields.
Wednesday assorted links - Marginal REVOLUTION
1. Göran Söllscher plays The Long and Winding Road. 2. “Hallucination is not a bug, it is LLM’s greatest feature.” 3. On commercial zoning liberalization. 4. Why are so many U.S. pedestrian deaths happening at night? (NYT) And provocative sex is back at the movies (NYT). 5. Maurice Obstfeld argues that low real interest rates […]
RBI wants to keep inflation vigil, MPC’s external members see room to ease a bit - The Economic Times
External members of the Monetary Policy Committee suggest reducing policy interest rates due to temporary food shocks and high real interest rates. However, caution is advised as markets are running ahead of policy makers and inflation history suggests challenges in bringing it down.
Real interest rates above 2% may not be sustainable from growth perspective: Shashanka Bhide - The Economic Times
With the policy rate as the instrument, there is a trade-off in terms of growth while bringing down the inflation rate to the target. However, a moderate inflation rate is also needed to achieve sustained high growth. While real interest rates above 2% may not be sustainable from a growth perspective, the persistence of inflation above the target is also unacceptable in the present framework, says Shashanka Bhide, member of the Monetary Policy Committee of the Reserve Bank of India.