Basic information
Chinese name
nominal interest rate
Foreign name
nominal interest rate
type
economic theory
computing formula
r=i+p
function
Interest rate charged or paid
launch
concept
nominal interest rate
Although the nominal interest rate is the interest rate charged or paid by fund providers or users in cash, people should take inflation into account. For example, Zhang deposited a one-year deposit of 65,438+000 yuan in the bank, and earned 5 yuan interest at the expiration of one year. The interest rate is 5%, which is the nominal interest rate. Nominal interest rate and nominal exchange rate interact, especially in developing countries.
The so-called real real interest rate refers to the real interest rate after financial institutions deduct the credit risk from the nominal interest rate and then deduct the price index. Therefore, it is not surprising that the regional financial resources flow in China, and the unbalanced regional economic development is naturally traceable. Of course, this raises an unprecedented question for us. With the gradual unification of global monetary and monetary policies, China seems to have few options to deal with it.
differentiate
Compared with the real interest rate
Nominal interest rate is not the real income that investors can get, but also related to the purchasing power of money. If inflation occurs, the purchasing power of the money earned by investors will depreciate, so the real income earned by investors must exclude the influence of inflation, which is the real interest rate.
nominal interest rate
The real interest rate refers to the interest rate under the condition that the price level remains unchanged and therefore the purchasing power of money remains unchanged. There is the following relationship between nominal interest rate and real interest rate:
1. When the interest period is one year, the nominal interest rate is equal to the real interest rate; When the interest period is shorter than one year, the real interest rate is greater than the nominal interest rate.
2. The nominal interest rate can't fully reflect the time value of funds, but the real interest rate truly reflects the time value of funds.
3.I stands for the real interest rate, R stands for the nominal interest rate, and N stands for the number of annual interest calculations, so the relationship between the nominal interest rate and the real interest rate is
1+ nominal interest rate =( 1+ real interest rate) *( 1+ inflation rate), which is generally simplified as nominal interest rate = real interest rate+inflation rate.
4. The greater the nominal interest rate, the shorter the term, and the greater the difference between the real interest rate and the nominal interest rate.
For example, the bank's one-year deposit rate is 2%, and the inflation rate is 3% during the same period. The actual purchasing power of the funds deposited by depositors is depreciating. So the real interest rate after deducting inflation is more practical. Still in the above example, the real interest rate is 2%-3% =- 1%, that is to say, it is a loss to put in the bank. Under the long-term pattern of China's high-speed economic growth and difficult to digest inflationary pressure, it is easy for the real interest rate to be negative, even if the central bank keeps raising interest rates, it is difficult to eliminate it. So the nominal interest rate may be higher and higher, but rational people still won't put their main assets in the bank in the form of cash.