Selective Definitions of Economic Terms That Pertain to the Valuation of Forex Currencies and To Understand and Determine Economic Cycles
11/30/10
Negative Interest Rates
If there is a negative real interest rate, it means that the inflation rate is greater than the interest rate. If the Federal funds rate is 2% and the inflation rate is 10%, then the borrower would gain 7.27% of every dollar borrowed.
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