REAL INTEREST RATE


Meaning of REAL INTEREST RATE in English

The rate of interest excluding the effect of expected inflation ; that is, the rate that is earned in terms of constant-purchasing-power dollars. Interest rate expressed in terms of real goods, i.e. nominal interest rate adjusted for expected inflation.

Campbell R. Harvey. Hypertextual finance English glossary.      Английский словарь гипертекстовых финансов.