The phrase "a nominal interest" is correct and usable in written English.
It can be used in financial contexts to refer to the stated interest rate on a loan or investment, without taking into account inflation or other factors.
Example: "The bank offers a nominal interest of 3% on savings accounts, which may not reflect the actual purchasing power over time."
Alternatives: "a stated interest" or "a basic interest".
At a nominal interest rate of zero, an expected inflation rate of 1% yields a real interest rate of -1%.
At the beginning of each period there is a capital market, at which individuals can trade cash for one-period bonds, with a nominal interest rate it.
Still, to mitigate fears of inflation, we recommend tying the cash drops to a Taylor rule (a nominal interest rate/inflation rate target) and when the economy hits that target, the drops stop.
For a given real interest rate, an inflation rate that is 0.5% higher corresponds to a nominal interest rate that is 0.5% higher—and which can therefore be cut by 0.5 additional percentage points before the ZLB is reached.
European financial firms, which received a combined 489 billion euros in loans from the European Central Bank in late December, are able to lend the money back to the central bank at a nominal interest rate of 0.25 percent.
"Abolition crushed the industry, but the convict leasing system resurrected it in a form that can legitimately be seen as more pernicious than slavery: Slave masters had at least a nominal interest in keeping alive people whom they owned and in whom they held an economic stake," he wrote.
A total of 18,000 housing units are to be put into development by small builders, using private construction financing and permanent private mortgages with a city subsidy in the form of a nominal-interest second mortgage of $12,000 to $15,000 an apartment.
To take an example that is very relevant today, wage deflation can make things worse when the economy is in a liquidity trap: Higher deflation, combined with a zero nominal interest rate, implies a higher real interest rate and thus lower demand, lower output, and higher unemployment.
But what happens if the money supply is increased still further - so that the intersection of MM and CC is at a point like 3, with a negative nominal interest rate?
A negative real interest rate works where a negative nominal interest rate does not: holding cash does no good, since inflation reduces the purchasing power of hard currency as well as deposits.
Some suggest the Swiss ought to announce a peg to the euro or engineer a negative nominal interest rate.Rather than buying foreign exchange, policymakers can keep it out of the country, sequestering it abroad like a non-native species.
