Timeline for Is zero inflation desirable?
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Aug 2, 2018 at 18:05 | comment | added | Acccumulation | "Real interest rate = Nominal interest rate - Inflation" This is a close approximation for small values, but the real formula is real interest rate = (1+nominal interest rate)/(1+inflation). For instance, if the nominal interest rate is 50%, and inflation is 100%, then after one year you will have nominal dollars equal to 150% of your starting dollars, which will be worth 75% of your starting dollars. | |
Aug 29, 2017 at 14:34 | history | answered | M3RS | CC BY-SA 3.0 |