Post
Topic
Board Economics
Re: Is deflation truly that bad for an economy?
by
dinofelis
on 27/03/2015, 10:46:44 UTC
Actually, I don't already understand what you mean by real interest and what you mean by nominal interest.

http://www.investopedia.com/articles/investing/082113/understanding-interest-rates-nominal-real-and-effective.asp

Nominal interest rate – Inflation = Real interest rate

Quote
A hypothesis maintains that the inflation rate moves in tandem with nominal interest rates over time, which means that real interest rates become stable over longer time periods. Investors with longer time horizons may, therefore, be able to more accurately assess their investment returns on an inflation-adjusted basis.