real rate of interest definition

real rate of interest

Interest rate adjusted for the expected erosion of the purchasing power due to inflation, computed by deducting the expected rate of inflation from the nominal (market) interest rate. Also called real interest rate.

real rate of interest is in the Accounting & Auditing, Banking, Commerce & Finance and Economics, Politics, & Society subjects.

real rate of interest appears in the definitions of the following terms: real interest rate, Fisher equation, Fisher hypothesis and nominal rate of interest

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