Real interest rates: related pages

Fisher hypothesis
The Fisher hypothesis, suggests that, in the long run, inflation and nominal interest rates move together, implying that real interest rates are stable in the long term.
Interest rate
Although interest rates may appear to be straightforward, they may be quoted and calculated in a number of different ways.
Nominal interest rates
The actual interest rate without any adjustments. Usually the interest payment ÷ principal.
Real return
The return on an investment, less the reduction in its value as a result of inflation.
Real terms
The change in a financial number after correcting for the effect of inflation.
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