a A higher real exchange rate signifies a real depreciation of the local currency.

Assumed rate of real return (Millions of United States dollars)

The second adverse effect of deflation is to raise the real interest rate, that is, the difference between the nominal interest rate and the rate of inflation. When prices are rising, the real interest rate is less than the nominal rate since the borrower repays with dollars that are worth less.

This is attributable to the lower rate of increase in real GDP.

Large current account surpluses and or rising terms of trade imply that the equilibrium real exchange rate (the relative price of foreign to domestic goods) has appreciated in countries like China and Russia. Thus, over time the actual real exchange rate needs to converge via real appreciation with the stronger equilibrium rate.

Given the current expected inflation rate of 2 , the real rate on ten year bonds is still less than 1 . Past experience implies that the real rate will rise to at least 2 , taking the total nominal interest rate to more than 4 , even if expected inflation remains at just 2 .

The Fund apos s Consulting Actuary and the Committee of Actuaries took the view that the real rate of return assumption used in the actuarial valuations of the Fund would not be the appropriate interest rate, as it reflected an assumed average long term real interest rate.

The average real growth rate was 4.5 per cent, whereas the rate of inflation was lowered and stabilized at less than 5 per cent.

As a real tribute, the United Nations should compensate all of its peacekeepers at the same rate.

In the absence of selective export promotion policies, competitiveness depends on the behaviour of real wages and the real exchange rate, as well as on productivity growth.

It was only in combination with the interest rate assumption, that is, the real rate of return, that there was an impact on the actuarial values calculated

Just when real estate agents were looking forward to selling more real estate during the holiday season, growth rate of residential property prices was the lowest since 2013.

39. In the absence of selective export promotion policies, competitiveness depends on the behaviour of real wages and the real exchange rate, as well as on productivity growth.

Questions had been asked about the growth rate, in particular whether a zero real growth rate provided an adequate level of funding for the priorities of the Organization.

This is apparent in the fact that, over the last 15 years, the real federal funds rate the Fed s benchmark policy rate, adjusted for inflation has been in negative territory more than 60 of the time, averaging 0.6 since May 2001. From 1990 to 2000, by contrast, the real federal funds rate averaged 2.2 .

Deflation increases the real (inflation adjusted) debt burden, as well as the real interest rate. Though there is little evidence of the importance of small changes in real interest rates, the effect of even mild deflation on real debt, year after year, can be significant.

This represents a yearly real rate of return of 4.1 per cent for the same period, after adjustment based on the United States consumer price index, and compares favourably with the 3.5 per cent long term real rate of return assumed in the actuarial calculation.

b Calculated by multiplying the ratio of value added per worker in manufacturing (column 3) to real wage costs in manufacturing (column 2) by the real exchange rate (column 1).

But what matters is the real rate of interest, that is, the difference between the market rate and inflation. Aggregate economic balance may require a negative real interest rate but with inflation at an all time low the IMF expects it to be negative this year and next in the advanced economies, and zero in the emerging economies this is not feasible.

A ten year Treasury has a nominal interest rate of less than 2 . Because the inflation rate is also about 2 , this implies a negative real interest rate, which is confirmed by the interest rate of 0.6 on ten year Treasury Inflation Protected Securities (TIPS), which adjust interest and principal payments for inflation.

Moreover, low inflation and periods of deflation did not prevent real incomes from rising in Japan. From 1999 to 2013, real per capita GDP rose at an annual rate of about 1 (which reflected a more modest rise of real GDP and an actual decline in population).

Imagine, for example, that Germany borrows at a 1 fixed real interest rate with a ten year maturity and invests the proceeds in repairing domestic transport infrastructure. These investments bring a modest real financial rate of return of 4 through fees, tolls, and, in the longer run, tax revenues (stemming from an increase in GDP).

Of primary interest is the remote sensing of Earth, so that precise stabilization is required both for observation and for a high data transmission rate to permit real time or almost real time reception of the pictures.

For countries seeking re entry into international financial markets after the debt crisis, higher real interest rates and a stable exchange rate were prerequisites.

Real exchange rate adjustments inside a monetary union, or among countries with fixed exchange rates, can take place through inflation differentials. The real value of the Chinese renminbi, for example, has appreciated considerably relative to the US dollar, despite limited nominal exchange rate changes, because China s domestic prices have risen faster than have prices in the United States.

Quarter after quarter the macroeconomic news from the United States teaches the same lesson real GDP growth at a sustained rate of 3 per year is not enough to increase America's employment level. Not even real GDP growth at a sustained annual rate of 4 is sufficient to increase the share of American adults who have jobs.

Asthma large number, we could detect things like pollen count, air quality, respiratory rate. Breast cancer, I'll show you an example of that real quickly.

Japan s government is able to pay such a low rate of interest because domestic prices have been falling for more than a decade, while the yen has been strengthening against other major currencies. Domestic deflation means that the real interest rate on Japanese bonds is higher than the nominal rate.

Meanwhile, Western central banks are using another kind of financial repression by maintaining negative real interest rates (yielding less than the rate of inflation), which enables them to service their debt for free. The European Central Bank s policy rate stands at 0.75 , while the eurozone s annual inflation rate is 2.5 .

Gordon also points to the recent slowdown in real (inflation adjusted) GDP growth. According to official US statistics, real GDP per worker grew at an average annual rate of 2.3 from 1891 to 1972, but by only 1.5 since then.

Since 1980, average real hourly compensation has increased at an annual rate of 1 , or half the rate of productivity growth. Wage gains have also become considerably more unequal, with the biggest increases claimed by the top 10 of earners.

The PBC should target the renminbi s rate of real appreciation, rather than the inflation rate under a stable renminbi. And then the government needs to focus more attention on structural adjustment the only effective cure for China s 3.2 trillion headache.

The cumulative annualized total rate of return over the 38 year period for which data are available was 9 per cent, or a real rate of return of 3.8 per cent, after adjustment by the United States consumer price index.

A real estate property tax will be introduced, in order to suppress skyrocketing housing prices and reduce the vacancy rate a controversial but perhaps necessary move.

Developing countries achieved an average real growth rate of 6.2 per cent, while annual growth among countries with economies in transition amounted to 7.1 per cent.

It was the domestic policies of these countries, especially of the United States, which were responsible for the unprecedented rise in the real rate of interest.

There is huge room to maneuver between the extremes of targeting a specific level of the real exchange rate and disowning any interest in the real exchange rate. The central bank does need to have a view, updated over time, about the exchange rate s appropriate range, and it should signal when it thinks the currency is moving in the wrong direction.

In theory, by depressing aggregate demand, the combination of increased real debt and higher real interest rates could lead to further price declines, leading to even larger negative inflation rates. As a result, the real interest rate would rise further, pushing the economy deeper into a downward spiral of falling prices and declining demand.

On one hand, China should not try to eliminate overcapacity by maintaining the high growth rate of real estate investment. While investment in social housing should be welcomed, real estate investment, currently running at 10 13 of GDP, is already far too high.

Although it is difficult to anticipate how high long term interest rates will eventually rise, the large budget deficit and the rising level of the national debt suggest that the real rate will be higher than 2 . A higher rate of expected inflation would also cause the total nominal rate to be greater than 5 .

If food inflation recedes further, and the headline inflation rate starts to converge on the 3 core (non food) rate, the result will be the equivalent of passive monetary tightening in real (inflation adjusted) terms precisely what the inflation prone Chinese economy needs.

Upon requesting clarification, the Advisory Committee had been informed that the increase was based on the real estate inflation rate at The Hague the general inflation rate for cost of living applied at The Hague by the United Nations was 1.9 per cent.

The cumulative annualized total rate of return over the 38 year period for which data are available was 9 per cent, representing a yearly quot real quot rate of return of 3.8 per cent after adjustment by the United States consumer price index.

27. From 1991 to 1995 the Dominican GDP at 1970 prices grew at a rate of 1.22 and in real per capita terms recorded an increase of 1.13 .

The overall rate of growth of prices of goods and services (in order to adjust the level of the minimum wage and prevent it decreasing in real value).