The phrase "a nominal interest rate" is correct and usable in written English.
It is typically used in financial contexts to refer to the stated interest rate on a loan or investment, not adjusted for inflation.
Example: "The bank offers a nominal interest rate of 5% on savings accounts."
Alternatives: "stated interest rate" or "face interest rate".
At a nominal interest rate of zero, an expected inflation rate of 1% yields a real interest rate of -1%.
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.
Bernanke pays a nominal interest rate on reserves that banks leave at the Feda totally risk-free return.
HOMER assumes that all prices escalate at the same rate and applies an annual real interest rate rather than a nominal interest rate.
This classroom experiment uses a double oral auction credit market to demonstrate how inflation uncertainty causes a wealth transfer between borrowers and lenders.The experiment also shows the social cost of inflation uncertainty when borrowers and lenders cannot agree on a nominal interest rate that compensates each for their risk.
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.
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.
There are a number of approaches worth considering - for example, the idea of a "demurrage" (or "tax money") which might allow for a negative nominal interest rate when money is withheld.
When inflation rises, for instance, bondholders will expect a higher nominal interest rate on new debt.
