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.
The Fed's predictable response to inflation is based on erroneous economic thinking common with Keynesians. Only a free-market approach can reduce inflation and restore true market interest rates.
tag:blogger.com,1999:blog-24784288.post-8605484086647563762 2022-03-30T12:19:00.001-04:00 2022-03-31T06:51:12.540-04:00 Webinar Tomorrow <p>Tomorrow, I will be giving a webinar on the 40-year decline in real interest rates. If you are interested, <a href="https://go.macmillanlearning.com/register-2
Bottom line: Real interest rates don’t reset on bonds you’ve bought; inflation adjustments reset, even on already purchased bonds, every 6 months. At pickleball a week ago, a number of us got talking about U.S. Treasury I-Bonds. My wife and I have each bought our quota of $10,000 annually for 2021 and 2022. A pickleball […]
India's real interest rate has turned positive after headline retail inflation eased below 6% for the first time this year, analysts said, suggesting that the peak policy rate is now close
Here is a new essay by Trevor Chow, Basil Halperin, and J. Zachary Mazlish, all favorite thinkers of mine, excerpt and these are their words I will not double indent: “In this post, we point out that short AI timelines would cause real interest rates to be high, and would do so under expectations of either […]
US urban inflation eased to 6.4% in December, lower than it has been since October 2021. That puts real interest rates at their highest – albeit still negative – level in 22 months. The inflation-adjusted federal funds rate was -2.32%, up from -7% a year ago. The bank prime rate turned positive for the first…
On 12 January, the Central Bank of Argentina (BCRA) decided to keep the LELIQ rate unchanged at 75.00%. The Bank stood pat as it deemed the current rate sufficient to support the peso and limit inflation and inflation expectations. Argentina’s monetary policy is framed in an agreement with the IMF; the country has committed to moving gradually towards positive real interest