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Topic: Real vs nominal in economics

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Nominal interest rate

Interest rate

Inflation

Real number

Real GDP

Crowding out (economics)

Phillips curve

Imaginary number

Aggregate demand

Gross domestic product

Purchasing power

Substitution effect

Cost push inflation

Keynesian

Imaginary unit

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	real vs. nominal in economics \| English \| Dictionary & Translation by Babylon
		real vs. nominal in economics in Italian
		Nominal values in economics are values of anything expressed current monetary terms, as opposed to real values, which are expressed in terms of a good or a bundle of goods.
		Real value, such as real wages, or real gross domestic product, are derived by dividing the relevant monetary value by the price of a relevant good, or a price index of a bundle of goods (in this case, the bundle may change over time).
	www.babylon.com /definition/real_vs._nominal_in_economics/English (180 words)

	Real vs. nominal in economics - Facts, Information, and Encyclopedia Reference article
		In economics, the distinction between nominal and real numbers is often made.
		Real numbers - real wages, interest rates, and GDP - are corrected for the effects of inflation.
		real wage is the ratio of the nominal wage to some measure of the price level (for example, the consumer price index).
	www.startsurfing.com /encyclopedia/r/e/a/Real_vs._nominal_in_economics.html (411 words)

	Real vs. Nominal, High School Economics Topics: Library of Economics and Liberty
		Real vs. Nominal is one of 51 key economics concepts identified by the National Council on Economic Education (NCEE) for high school classes.
		Real values convert the nominal values as if prices were constant in each year of the series.
		Any differences in real values are then attributed to differences in quantities of the bundle or differences in the amount of goods that the money incomes could buy in each year....
	www.econlib.org /library/Topics/HighSchool/RealvsNominal.html (544 words)

	Real vs Nominal Variables -- Basic Material
		The common method of deflating a nominal to obtain a real variable is to rid the nominal variable of its currency unit.
		Real vs Nominal Yields: Q-hat is the nominal yield on strips and zeros but it is not measured in terms of a currency -- it has no currency dimension.
		If the initial nominal variable is measured with a currency unit, one must divide by another nominal variable (with the same currency unit) in order to obtain the a real measure of the original variable.
	www.colorado.edu /econ/courses/roper/basics/real-vs-nominal-variables.html (1427 words)

	Nominal - Wikinfo
		In Economics a nominal value indicates the listed value of an item in a monetary currency as opposed to the 'real' value in terms of purchasing power.
		In Grammar nominal phrase is a synonym for noun phrase.
		In Statistics nominal data is a form of categorical data where the order of the categories is not significant.
	www.internet-encyclopedia.org /index.php/Nominal (243 words)

	Injection in Arm
		See also nominal interest rate is calculated by adjusting the actual inflation rate equals [1.07/1.05]-1 = 0.19 or 1.9%, which is similar to (but not the same assumptions and definitions in their calculation of APR into someone who understands credit card rates.
		See also nominal interest rate is the yield on a short-term risk-free liquid bond (such as balloon payments or bi-weekly payments instead of straight monthly payments), but most standard APR calculators have difficulty with those calculations.
		(See real vs. nominal in economics.) When comparing different interest rates on different kinds of fees are not included, some consumer advocates claim that the attorney's fee is an example of a pass-through cost, not a cost of the relationship between nominal interest rate, inflation and real interest rate is 2%.
	adjustableratemortgage.2vv1.com /injectioninarm.html (1470 words)

	Econbrowser: Real vs. nominal, seasonally adjusted vs. nsa
		They diverge for a number of reasons, including the fact that the nominal (exhibit 9) and real (exhibit 11) series are seasonally adjusted, while the barrel counts are not.
		Real chain-weighted magnitudes cannot be added, while real magnitudes obtained by deflating with the CPI (which is base-year weighted, or Laspeyres, index) can be.
		So your plot of nominal versus chain-weighted, is not a plot of how much we paid nominally compared to how much in Y2000 dollars, but rather a plot of how much we paid compared to how much we got.
	www.econbrowser.com /archives/2006/04/real_vs_nominal.html (1256 words)

	Academic Economics
		Critics of behavioral economics often argue that apparent irrationality arises mainly because test subjects lack adequate incentives; the defenders of behavioral economics typically reply that their findings are robust to this criticism.
		Economic models of politics typically make two assumptions about voters: First, their motives are egocentric, not sociotropic; second, their beliefs are rational, not subject to systematic bias.
		This "economic calculation problem" was said by the Austrian economists to show that socialism is "impossible." Although many believe that the Austrian position was later vindicated by the collapse of the Soviet bloc, the Austrian school's own methodology disallows such a conclusion.
	www.gmu.edu /departments/economics/bcaplan/econ.html (4027 words)

	SparkNotes: Measuring the Economy 1: Gross Domestic Product (GDP)
		Nominal GDP is more useful than real GDP when comparing sheer output, rather than the value of output, over time.
		The GDP deflator is the ratio of nominal GDP to real GDP for a given year minus 1.
		The ratio of nominal GDP to real GDP is ($74 / $64) - 1 = 16%.
	www.sparknotes.com /economics/macro/measuring1/section1.html (2019 words)

	Interest Rate - Real Estate Articles - Call Spencer Realty of Pensacola FL for Pensacola homes for sale, gulf breeze ...
		In this case, the nominal interest rate is 10% per annum.
		The real interest rate, which measures the purchasing power of interest receipts, is calculated by adjusting the nominal rate charged to take inflation into account.
		They then ensure that they offer or ask a nominal interest rate that means they have the appropriate real interest rate on their investment.
	www.spencerrealty.com /interestrate.html (1419 words)

	Interest rate - Real Time & Delayed Quotes, Charts, News and Data for Futures, Stocks, Commodities and Indexes - ...
		real vs. nominal in economics.) A first approximation for the real interest rate for a one-year loan is:
		Thus, if the (expected) inflation rate is 5% and the nominal interest rate is 7%, the (expected) real interest rate is 2%.
		Thus, if the real interest rate is 3% and the inflation rate equals 5%, the nominal interest rate = 8%.
	www.tradesignals.com /glossary/Interest_rate (567 words)

	Real vs. nominal in economics Encyclopedia (Site not responding. Last check: )
		Real and nominal determinants of real exchange rates in Latin America: short-run dynamics and long-run equilibrium.
		Real implications of the zero bound on nominal interest rates.(zero bound)
		Real wage and nominal shock: evidence from Pacific-rim countries.
	www.hallencyclopedia.com /topic/Real_vs._nominal_in_economics.html (99 words)

	[No title]
		Real growth is an increase in the number of goods.
		Nominal growth incorporates both an increase in the price of the goods produced and the number of goods produces into one number.
		The real interest rate is the real rate at which your money grows (the value of your money after adjusted for inflation).
	browndailysqueal.com /archives/realvsnomgdp.doc (581 words)

	ECON 320
		Increases in nominal GDP due to inflation does not indicate growth in the economy, and therefore does not indicate increases in aggregate material prosperity.
		In 2000, per-capita real GDP in the U.S. was $9,311,500,000,000/275,372,000 = $33,814.26.
		Comparison: Mexico's per-capita real GDP in 1999 was $8,500, Russia's per-capita real GDP in 1999 was $4,200, Sweden's was $20,700, Switzerland's was $27,100, Nepal's was $1,100, and Tanzania's was $550.
	www.humboldt.edu /~sh2/econ320/e320notes_week2.htm (1276 words)

	Real Term Structure
		The new hump in the comparison nominal and inflation curves are due to the addition of the 2/25nom for comparison to the new 1/25i, rather than to a change in the market.
		Effective 3/31/00, four indexed and nominal bonds are used to fit the real and nominal term structures, including the indexed 1/07 and the comparable-maturity nominal 2/07.
		The Nominal High-Yield Comparison Term Structure is fit using non-callable nominal bonds or notes of similar maturities to the three (or now four) indexed bonds used for the Real Term Structure.
	economics.sbs.ohio-state.edu /jhm/ts/ts.html (2322 words)

	The Capital Spectator: LET'S GET REAL
		Thus, the real, or genuine yield one could expect to receive is deflated by the inflation rate.
		The question of whether to choose a real vs. nominal yield arguably requires priority status these days, courtesy of the ascending state of inflation as measured by the consumer price index.
		Indeed, locking in a real 2% yield for the next 10 years is nothing to sneeze vs. accepting inflation-adjusted losses of 12 basis points a year, as the nominal 10-year requires of new investors at the moment.
	www.capitalspectator.com /archives/2005/10/lets_get_real.html (1004 words)

	Real Term Structure
		The new hump in the comparison nominal and inflation curves are due to the addition of the 2/25nom for comparison to the new 1/25i, rather than to a change in the market.
		Effective 3/31/00, four indexed and nominal bonds are used to fit the real and nominal term structures, including the indexed 1/07 and the comparable-maturity nominal 2/07.
		The Nominal High-Yield Comparison Term Structure is fit using non-callable nominal bonds or notes of similar maturities to the three (or now four) indexed bonds used for the Real Term Structure.
	www.econ.ohio-state.edu /jhm/ts/ts.html (2389 words)

	SparkNotes: Money: Interest Rates
		The real interest rate is equal to the nominal interest rate minus the inflation rate; the real interest rate, or the purchasing power of the loan, is equal to the interest earned less the effect of inflation.
		Because the nominal interest rate is equal to the real interest rate plus the inflation rate, an increase in the inflation rate due to an increase in the money supply by the Fed results in an increase in the nominal interest rate.
		The point for point adjustment of the nominal interest rate to the real interest rate is called the Fischer effect.
	www.sparknotes.com /economics/macro/money/section3.rhtml (984 words)

	Angry Bear
		Allan Hubbard, director of the National Economic Council, and Edward Lazear, chairman of the president's Council of Economic Advisers, take to the op-ed page of the Wall Street Journal as part of an effort to convince Americans their wages haven't been falling - and that if they haven't, it's not the administration's fault, anyway.
		Nominal wages are now growing faster than the past couple of years and are growing at about the same rate as they were in the late 1990s.
		I'm wondering if you asked Hubbard and Lazear whether, they'd prefer (a) having a 4 percent nominal raise in a year when inflation rose 3.8 percent; or (b) having a 3.6 percent nominal raise in a year when inflation rose 1.6 percent; they'd choose (a) as being equivalent or better.
	angrybear.blogspot.com /2006/10/on-real-compensation-real-economists.html (564 words)

	IT Investment: Will the Glory Days Ever Return? (2005-13, 6/17/2005)
		The good news is that some evidence suggests that continued advances should help real IT investment achieve rates of growth that exceed the growth in other investment goods; however, at the same time, there are reasons to think that growth in IT investment is likely to be more subdued than in the late 1990s.
		Figure 2 shows that growth in real IT investment was especially strong between 1995 and 2000, averaging 24% per year and adding an annual average of over 0.8 percentage point to the growth in real GDP.
		Since then, real IT investment has picked back up—for instance, in 2004 real IT investment grew 15.6 percent, contributing 1/2 percentage point to GDP growth—but it has not returned to the phenomenally high growth rates of the late 1990s.
	www.frbsf.org /publications/economics/letter/2005/el2005-13.html (1443 words)

	Real Estate vs Stocks
		Although they are the nominal owners of the corporation, each shareholder in the multitude of shareholders has little individual influence on corporate decisions.
		In short, real estate investment offers more control of funds invested much closer to home than investments in corporate financial instruments, in which the only control investors have may be whether to hold or sell the security.
		Second, prudent real estate investing requires study of real estate economics and local markets and a keen eye for future market developments.
	www.professionalrealestateinvestor.com /html/real_estate_vs_stocks.html (1064 words)

	U.S. Real GDP vs. Nominal GDP (Site not responding. Last check: )
		A GDP price index is a measure of the price of a specified collection of goods and services, called a "market basket," in a given year as compared to the price of an identical (or highly similar) collection of goods and services in a reference year.
		A nominal GDP is deflated by a GDP price index to obtain a real GDP when prices rise and is inflated by a GDP price index to obtain a real GDP when prices fall.
		Annual Nominal and Real GDP Data (1929 - 2003), Bureau of Economic Analysis, U.S. Department of Commerce, http://www.bea.doc.gov/bea/dn/gdplev.xls.
	faculty.hacc.edu /jhuang/econdata/htm/rn_gdp/rn_gdp.htm (140 words)

	Inetrest rate (Site not responding. Last check: )
		Note that the real interest rate is calculated by adjusting the actual rate charged (known as the money or nominal interest rate) to take inflation into account.
		Thus, if the (expected) inflation rate is 5% and the nominal interest rate is 7%, the (expected) real interest rate is 2%.
		Irving Fisher proposed a better approximation of the relationship between nominal interest rate, inflation and real interest rate.
	89571-gardens.super-directory-1.com /article-Interest_rate.html (477 words)

	Introduction to Financial Markets (Econ 308, Tesfatsion)
		What actually concerns a "rational" saver considering the purchase of a financial asset is not the nominal payment stream he or she expects to earn in future periods but rather the command over purchasing power that this nominal payment stream is expected to entail.
		Real interest rates provide a more accurate measure of the true costs of borrowing and the true gains from lending than nominal interest rates, and hence provide a better indicator of the incentives to borrow and lend.
		In particular, for any given nominal interest rate i on a debt instrument D, the incentive to borrow (issue D) will be higher if the real interest rate associated with i is lower (i.e., the expected inflation rate is higher).
	www.econ.iastate.edu /classes/econ308/tesfatsion/finintro.htm (4980 words)

	Forex TA - Inflation (Site not responding. Last check: )
		In economics, inflation is an increase in the general level of prices of a given kind.
		Supply-side economics asserts that inflation is always caused by either an increase in the supply of money or a decrease in the demand for money.
		Instead, reality indicates that inflation is primarily the result of growth in unproductive forms of government spending (basically entitlements and other expenditures that fail to stimulate the supply side).
	www.forexta.com /content/view/554 (4194 words)

	iTulip.com - Real DJIA 1924 to 2006
		That means the real DOW in terms of purchasing power is "worth" 9480 in 2000 dollars when it is reported at the 11340 closing price Friday, April 21, 2006.
		All you can say for sure is that the real DOW will revert to the mean and that there are two ways for it to do so: deflation as occurred in the correction from 1930 to 1931 or inflation as from 1965 to 1983.
		Not a 40% nominal decline but a 40% real decline on top of the 15% real decline we have seen from its peak in 2000.
	www.itulip.com /realdow.htm (1009 words)

	[No title]
		Economics is the social science that studies the methods by which individuals and societies organize production activities and allocate scarce resources to meet material wants and needs.
		An important part of economics is the analysis of the interaction of economic policy and economic activity with the objective of selecting policies which will encourage the desired outcome.
		The study of Economics helps to prepare students to make rational economic choices both in their own lives and in their participation in policy decisions as citizens of a city, state, nation, and the world.
	ecedweb.unomaha.edu /ec-cncps.htm (593 words)

	Prof
		where omega-n is "bargained real notional wage per efficiency unit", w-bar is the average nominal wage, a is the index of worker bargaining power, s is the value of unemployed time, and f is the ratio of fixed costs to output value at full employment. Real wage is competitive when a=0.
		In real model, one-time monetary expansions have no impact on nominal interest rates; changes in the rate of monetary growth raise nominal rates on a 1:1 basis.
		This is easy to understand with nominal rigidities, and hard to understand from any real perspective. With nominal rigidities, price level does not instantly rise when nominal money rises, so the market clears along a different margin by reducing the nominal rate until people are again satisfied with their real balance holdings.
	www.gmu.edu /departments/economics/bcaplan/e816/mac5.htm (1877 words)

	Economics Interactive
		The real (economic) costs of production usually exceed the accounting (bookkeeping) costs of production because economic costs include both explicit accounting costs and implicit costs – the value of the personal resources the owners of a firm make available (e.g., their labor and capital).
		Advanced industrialized countries tend to possess abundant economic capital, an educated populace that on average enjoys a relatively high standard of living, and to be technologically advanced, with well-developed markets for goods and resources.
		The perspective of institutionalism is that economic behavior is shaped by the history, structures, patterns, norms and routines within specific organizational environments or populations.
	www.unc.edu /depts/econ/byrns_web/Economicae/EconomicaeA.htm (4061 words)

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