Sentence examples for equilibrium interest from inspiring English sources
In theory, a country's equilibrium interest rate should equal its marginal return on capital.
A substantial proportion of this is likely to be raised offshore, absorbing excess global savings, helping to push up global equilibrium interest rates and ultimately increasing global growth".
If it isn't, but reflects instead a stronger rate of productivity growth, then the real equilibrium interest rate will increase, as investment opportunities expand.
Mr Viñals has also carried out simulations using different assumptions about inflation, the level of real equilibrium interest rates, and the likely impact of demand and supply shocks.
This would leave the Fed extremely vulnerable to enormous losses should global forces suddenly drive up equilibrium interest rates, with the US government then compelled to pay much higher interest rates to roll over its debt.
That was because the level at which interest rates must ultimately settle to ensure steady inflation – the "equilibrium" interest rate – was determined by fundamental factors driving savings and investment in the global economy, he said.
The primary fiscal balance, (d^{mathrm{P}}), equals government revenues, f, minus (non-interest) government spending, g: (d^{mathrm{P}}=f-g). (overline{r}) is the equilibrium real interest rate.
They both take her criticism with equilibrium and interest.
An inflation target of, say, 2%, might be too low to bring about a savings-investment balance if Japan's equilibrium real interest rate is, say, minus 2%.
The equilibrium yearly interest rate turns out to equal 8.7%%.
