Question
. Inflation, Nominal Interest Rates and Real Rates. Given the following information, estimate the inflation rate with the approximate nominal interest rate equation and the
. Inflation, Nominal Interest Rates and Real Rates. Given the following information, estimate the inflation rate with the approximate nominal interest rate equation and the true nominal interest rate equation.
| Nominal Rate | Real Rate | Approximate Inflation | True Inflation |
| 11% | 5% |
|
|
| 8% | 2% |
|
|
| 21% | 14% |
|
|
| 5.5% | 1.25% |
|
|
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Risk Sharing Finance
Authors: Bakkali Mirakhor, Saad Abbas
1st Edition
3110590468, 978-3110590463
