मँहगाई-दर इसके अंग्रेजी अर्थ का उदाहरण

It can be described more formally by the Fisher equation, which states that the real interest rate is approximately the nominal interest rate minus the inflation rate.

Since the inflation rate over the course of a loan is not known initially, volatility in inflation represents a risk to both the lender and the borrower.

In the case of contracts stated in terms of the nominal interest rate, the real interest rate is known only at the end of the period of the loan, based on the realized inflation rate; this is called the ex-post real interest rate.

The relation between real and nominal interest rates and the expected inflation rate is given by the Fisher equation.

\pi_e expected inflation rate.

If the inflation rate and the nominal interest are relatively low, the Fisher equation can be approximated by.

The inflation rate will not be known in advance.

People often base their expectation of future inflation on an average of inflation rates in the past, but this gives rise to errors.

The complexity increases for bonds issued for a long-term, where the average inflation rate over the term of the loan may be subject to a great deal of uncertainty.

Thus if a loan is made at with an inflation rate of and in risks associated with default or problems repaying, then the "risk adjusted" rate of return on the investment is .

If there is a negative real interest rate, it means that the inflation rate is greater than the nominal interest rate.

If the Federal funds rate is and the inflation rate is , then the borrower would gain of every dollar borrowed per year.

Treasury has been obtaining negative real interest rates on government debt, meaning the inflation rate is greater than the interest rate paid on the debt.