The nominal interest rate is the simple interest charged on a loan or paid on a deposit. Real interest is nominal interest after taking inflation’s effects into account. Economists, as well as lenders ...

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What is interesting, though, is that this behavior of nominal rates obscures what is really happening ‘under the hood’ so to ...

Inflation not only erodes the purchasing power of the dollar, it also impacts borrowing costs and real economic returns on investment securities. For this reason, investors are wise to understand and ...