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Interest rate

Index Interest rate

An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited or borrowed (called the principal sum). [1]

107 relations: Actuarial science, Aftermath of World War II, Annual percentage rate, Asset classes, Austrian School, Bank, Bank of England, Bank of Japan, Bankruptcy, Bargaining power, Bond (finance), Bond market, Broad money, Cash, Central bank, Collateral (finance), Consumption (economics), Current yield, Default (finance), Deutsche Bundesbank, Developed country, Disposable and discretionary income, Economic bubble, Economic growth, Economics, Effective interest rate, Euro, European Central Bank, European debt crisis, Ex-ante, Federal funds, Federal funds rate, Federal Reserve System, Financial capital, Financial economics, Financial repression, Financial Times, Fisher equation, Foreign exchange market, Freigeld, Freiwirtschaft, Funding, Fungibility, Government bond, Greg Mankiw, High-yield debt, Index (economics), Inflation, Interest, Internal rate of return, ..., International Monetary Fund, Investment, John Maynard Keynes, Karl Marx, Linear approximation, Liquidity preference, List of countries by central bank interest rates, List of Latin phrases (E), Logarithm, Logarithmic scale, Longevity risk, Macroeconomics, Market (economics), Momentum, Monetary policy, Money market, Natural logarithm, Neper, Nominal interest rate, Nominal yield, Open market operation, Perturbation theory, Post–World War II economic expansion, Present value, Prime rate, Quantitative easing, Quantity theory of money, Rate of return, Rational expectations, Real interest rate, Real versus nominal value (economics), Regulatory agency, Relative change and difference, Research in Economics, Risk, Risk management, Risk premium, Risk-free interest rate, Risk-neutral measure, Rutgers University Press, Security (finance), Serial code, Share (finance), Short-rate model, Silvio Gesell, Stock market, Sveriges Riksbank, The General Theory of Employment, Interest and Money, The New York Times, Time preference, Transaction cost, Unemployment, United States Treasury security, Volatility (finance), World Bank, Yield to maturity, Zero lower bound. Expand index (57 more) »

Actuarial science

Actuarial science is the discipline that applies mathematical and statistical methods to assess risk in insurance, finance and other industries and professions.

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Aftermath of World War II

The Aftermath of World War II was the beginning of an era defined by the decline of all great powers except for the Soviet Union and the United States, and the simultaneous rise of two superpowers: the Soviet Union (USSR) and the United States of America (USA).

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Annual percentage rate

The term annual percentage rate of charge (APR), corresponding sometimes to a nominal APR and sometimes to an effective APR (or EAPR), is the interest rate for a whole year (annualized), rather than just a monthly fee/rate, as applied on a loan, mortgage loan, credit card, etc.

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Asset classes

An asset class is a group of instruments which have similar financial characteristics and behave similarly in the marketplace.

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Austrian School

The Austrian School is a school of economic thought that is based on methodological individualism—the concept that social phenomena result from the motivations and actions of individuals.

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Bank

A bank is a financial institution that accepts deposits from the public and creates credit.

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Bank of England

The Bank of England, formally the Governor and Company of the Bank of England, is the central bank of the United Kingdom of Great Britain and Northern Ireland and the model on which most modern central banks have been based.

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Bank of Japan

The is the central bank of Japan.

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Bankruptcy

Bankruptcy is a legal status of a person or other entity that cannot repay debts to creditors.

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Bargaining power

Bargaining power is the relative ability of parties in a situation to exert influence over each other.

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Bond (finance)

In finance, a bond is an instrument of indebtedness of the bond issuer to the holders.

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Bond market

The bond market (also debt market or credit market) is a financial market where participants can issue new debt, known as the primary market, or buy and sell debt securities, known as the secondary market.

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Broad money

In economics, broad money is a term denoting a certain measure of the amount of money (of the money supply) in a national economy, and it is used depending on the local practice.

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Cash

In economics, cash is money in the physical form of currency, such as banknotes and coins.

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Central bank

A central bank, reserve bank, or monetary authority is an institution that manages a state's currency, money supply, and interest rates.

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Collateral (finance)

In lending agreements, collateral is a borrower's pledge of specific property to a lender, to secure repayment of a loan.

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Consumption (economics)

Consumption is the process in which consumers (customers or buyers) purchase items on the market.

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Current yield

The current yield, interest yield, income yield, flat yield, market yield, mark to market yield or running yield is a financial term used in reference to bonds and other fixed-interest securities such as gilts.

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Default (finance)

In finance, default is failure to meet the legal obligations (or conditions) of a loan, for example when a home buyer fails to make a mortgage payment, or when a corporation or government fails to pay a bond which has reached maturity.

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Deutsche Bundesbank

The Deutsche Bundesbank is the central bank of the Federal Republic of Germany and as such part of the European System of Central Banks (ESCB).

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Developed country

A developed country, industrialized country, more developed country, or "more economically developed country" (MEDC), is a sovereign state that has a highly developed economy and advanced technological infrastructure relative to other less industrialized nations.

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Disposable and discretionary income

Disposable income is total personal income minus personal current taxes.

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Economic bubble

An economic bubble or asset bubble (sometimes also referred to as a speculative bubble, a market bubble, a price bubble, a financial bubble, a speculative mania, or a balloon) is trade in an asset at a price or price range that strongly exceeds the asset's intrinsic value.

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Economic growth

Economic growth is the increase in the inflation-adjusted market value of the goods and services produced by an economy over time.

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Economics

Economics is the social science that studies the production, distribution, and consumption of goods and services.

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Effective interest rate

The effective interest rate (EIR), effective annual interest rate, annual equivalent rate (AER) or simply effective rate is the interest rate on a loan or financial product restated from the nominal interest rate as an interest rate with annual compound interest payable in arrears.

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Euro

The euro (sign: €; code: EUR) is the official currency of the European Union.

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European Central Bank

The European Central Bank (ECB) is the central bank for the euro and administers monetary policy of the euro area, which consists of 19 EU member states and is one of the largest currency areas in the world.

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European debt crisis

The European debt crisis (often also referred to as the Eurozone crisis or the European sovereign debt crisis) is a multi-year debt crisis that has been taking place in the European Union since the end of 2009.

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Ex-ante

The term ex-ante (sometimes written ex ante or exante) is a phrase meaning "before the event".

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Federal funds

In the United States, federal funds are overnight borrowings between banks and other entities to maintain their bank reserves at the Federal Reserve.

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Federal funds rate

In the United States, the federal funds rate is the interest rate at which depository institutions (banks and credit unions) lend reserve balances to other depository institutions overnight, on an uncollateralized basis.

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Federal Reserve System

The Federal Reserve System (also known as the Federal Reserve or simply the Fed) is the central banking system of the United States of America.

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Financial capital

Financial capital is any economic resource measured in terms of money used by entrepreneurs and businesses to buy what they need to make their products or to provide their services to the sector of the economy upon which their operation is based, i.e. retail, corporate, investment banking, etc.

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Financial economics

Financial economics is the branch of economics characterized by a "concentration on monetary activities", in which "money of one type or another is likely to appear on both sides of a trade".

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Financial repression

Financial repression comprises "policies that result in savers earning returns below the rate of inflation" in order to allow banks to "provide cheap loans to companies and governments, reducing the burden of repayments".

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Financial Times

The Financial Times (FT) is a Japanese-owned (since 2015), English-language international daily newspaper headquartered in London, with a special emphasis on business and economic news.

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Fisher equation

The Fisher equation in financial mathematics and economics estimates the relationship between nominal and real interest rates under inflation.

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Foreign exchange market

The foreign exchange market (Forex, FX, or currency market) is a global decentralized or over-the-counter (OTC) market for the trading of currencies.

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Freigeld

As part of the theory of Freiwirtschaft, Freigeld ('free money') is a monetary (or exchange) unit proposed by Silvio Gesell.

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Freiwirtschaft

Freiwirtschaft (German for "free economy") is an economic idea founded by Silvio Gesell in 1916.

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Funding

Funding is the act of providing financial resources, usually in the form of money, or other values such as effort or time, to finance a need, program, and project, usually by an organization or company.

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Fungibility

In economics, fungibility is the property of a good or a commodity whose individual units are essentially interchangeable.

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Government bond

A government bond or sovereign bond is a bond issued by a national government, generally with a promise to pay periodic interest payments and to repay the face value on the maturity date.

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Greg Mankiw

Nicholas Gregory Mankiw (born February 3, 1958) is an American macroeconomist and the Robert M. Beren Professor of Economics at Harvard University.

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High-yield debt

In finance, a high-yield bond (non-investment-grade bond, speculative-grade bond, or junk bond) is a bond that is rated below investment grade.

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Index (economics)

In economics and finance, an index is a statistical measure of changes in a representative group of individual data points.

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Inflation

In economics, inflation is a sustained increase in price level of goods and services in an economy over a period of time.

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Interest

Interest is payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum (i.e., the amount borrowed), at a particular rate.

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Internal rate of return

The internal rate of return (IRR) is a method of calculating rate of return.

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International Monetary Fund

The International Monetary Fund (IMF) is an international organization headquartered in Washington, D.C., consisting of "189 countries working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world." Formed in 1945 at the Bretton Woods Conference primarily by the ideas of Harry Dexter White and John Maynard Keynes, it came into formal existence in 1945 with 29 member countries and the goal of reconstructing the international payment system.

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Investment

In general, to invest is to allocate money (or sometimes another resource, such as time) in the expectation of some benefit in the future – for example, investment in durable goods, in real estate by the service industry, in factories for manufacturing, in product development, and in research and development.

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John Maynard Keynes

John Maynard Keynes, 1st Baron Keynes (5 June 1883 – 21 April 1946), was a British economist whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments.

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Karl Marx

Karl MarxThe name "Karl Heinrich Marx", used in various lexicons, is based on an error.

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Linear approximation

In mathematics, a linear approximation is an approximation of a general function using a linear function (more precisely, an affine function).

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Liquidity preference

In macroeconomic theory, liquidity preference is the demand for money, considered as liquidity.

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List of countries by central bank interest rates

This is a list of countries by annualized interest rate set by the central bank for charging commercial, depository banks for loans to meet temporary shortages of funds.

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List of Latin phrases (E)

Additional sources.

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Logarithm

In mathematics, the logarithm is the inverse function to exponentiation.

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Logarithmic scale

A logarithmic scale is a nonlinear scale used when there is a large range of quantities.

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Longevity risk

A longevity risk is any potential risk attached to the increasing life expectancy of pensioners and policy holders, which can eventually result in higher pay-out ratios than expected for many pension funds and insurance companies.

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Macroeconomics

Macroeconomics (from the Greek prefix makro- meaning "large" and economics) is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole.

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Market (economics)

A market is one of the many varieties of systems, institutions, procedures, social relations and infrastructures whereby parties engage in exchange.

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Momentum

In Newtonian mechanics, linear momentum, translational momentum, or simply momentum (pl. momenta) is the product of the mass and velocity of an object.

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Monetary policy

Monetary policy is the process by which the monetary authority of a country, typically the central bank or currency board, controls either the cost of very short-term borrowing or the monetary base, often targeting an inflation rate or interest rate to ensure price stability and general trust in the currency.

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Money market

As money became a commodity, the money market became a component of the financial markets for assets involved in short-term borrowing, lending, buying and selling with original maturities of one year or less.

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Natural logarithm

The natural logarithm of a number is its logarithm to the base of the mathematical constant ''e'', where e is an irrational and transcendental number approximately equal to.

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Neper

The neper (symbol: Np) is a logarithmic unit for ratios of measurements of physical field and power quantities, such as gain and loss of electronic signals.

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Nominal interest rate

In finance and economics, the nominal interest rate or nominal rate of interest is either of two distinct things.

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Nominal yield

The coupon rate (or nominal rate or nominal yield) of a fixed income security is the (annualized) amount of the coupon, which is a fixed percentage of the par value.

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Open market operation

An open market operation (OMO) is an activity by a central bank to give (or take) liquidity in its currency to (or from) a bank or a group of banks.

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Perturbation theory

Perturbation theory comprises mathematical methods for finding an approximate solution to a problem, by starting from the exact solution of a related, simpler problem.

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Post–World War II economic expansion

The post–World War II economic expansion, also known as the postwar economic boom, the long boom, and the Golden Age of Capitalism, was a period of strong economic growth beginning after World War II and ending with the 1973–75 recession.

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Present value

In economics and finance, present value (PV), also known as present discounted value, is the value of an expected income stream determined as of the date of valuation.

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Prime rate

A prime rate or prime lending rate is an interest rate used by banks, usually the interest rate at which banks lend to favored customers—i.e., those with good credit.

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Quantitative easing

Quantitative easing (QE), also known as large-scale asset purchases, is an expansionary monetary policy whereby a central bank buys predetermined amounts of government bonds or other financial assets in order to stimulate the economy and increase liquidity.

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Quantity theory of money

In monetary economics, the quantity theory of money (QTM) states that the general price level of goods and services is directly proportional to the amount of money in circulation, or money supply.

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Rate of return

In finance, return is a profit on an investment.

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Rational expectations

In economics, "rational expectations" are model-consistent expectations, in that agents inside the model are assumed to "know the model" and on average take the model's predictions as valid.

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Real interest rate

The real interest rate is the rate of interest an investor, saver or lender receives (or expects to receive) after allowing for inflation.

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Real versus nominal value (economics)

In economics, a real value of a good or other entity has been adjusted for inflation, enabling comparison of quantities as if prices had not changed.

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Regulatory agency

A regulatory agency (also regulatory authority, regulatory body or regulator) is a public authority or government agency responsible for exercising autonomous authority over some area of human activity in a regulatory or supervisory capacity.

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Relative change and difference

In any quantitative science, the terms relative change and relative difference are used to compare two quantities while taking into account the "sizes" of the things being compared.

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Research in Economics

Research in Economics is a quarterly peer-reviewed academic journal of economics.

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Risk

Risk is the potential of gaining or losing something of value.

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Risk management

Risk management is the identification, evaluation, and prioritization of risks (defined in ISO 31000 as the effect of uncertainty on objectives) followed by coordinator and economical application of resources to minimize, monitor, and control the probability or impact of unfortunate events or to maximize the realization of opportunities.

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Risk premium

For an individual, a risk premium is the minimum amount of money by which the expected return on a risky asset must exceed the known return on a risk-free asset in order to induce an individual to hold the risky asset rather than the risk-free asset.

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Risk-free interest rate

The risk-free interest rate is the rate of return of a hypothetical investment with no risk of financial loss, over a given period of time.

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Risk-neutral measure

In mathematical finance, a risk-neutral measure (also called an equilibrium measure, or equivalent martingale measure) is a probability measure such that each share price is exactly equal to the discounted expectation of the share price under this measure.

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Rutgers University Press

Rutgers University Press is a nonprofit academic publishing house, operating in New Brunswick, New Jersey under the auspices of Rutgers University.

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Security (finance)

A security is a tradable financial asset.

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Serial code

A serial code is a unique identifier assigned incrementally or sequentially to an item.

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Share (finance)

In financial markets, a share is a unit used as mutual funds, limited partnerships, and real estate investment trusts.

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Short-rate model

A short-rate model, in the context of interest rate derivatives, is a mathematical model that describes the future evolution of interest rates by describing the future evolution of the short rate, usually written r_t \,.

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Silvio Gesell

Silvio Gesell (17 March 1862 – 11 March 1930) was a German merchant, theoretical economist, social activist, Georgist, anarchist, libertarian socialist, and founder of Freiwirtschaft.

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Stock market

A stock market, equity market or share market is the aggregation of buyers and sellers (a loose network of economic transactions, not a physical facility or discrete entity) of stocks (also called shares), which represent ownership claims on businesses; these may include securities listed on a public stock exchange as well as those only traded privately.

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Sveriges Riksbank

Sveriges Riksbank, or simply Riksbanken, is the central bank of Sweden.

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The General Theory of Employment, Interest and Money

The General Theory of Employment, Interest and Money of 1936 is the last and most important book by the English economist John Maynard Keynes.

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The New York Times

The New York Times (sometimes abbreviated as The NYT or The Times) is an American newspaper based in New York City with worldwide influence and readership.

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Time preference

In economics, time preference (or time discounting, delay discounting, temporal discounting) is the current relative valuation placed on receiving a good at an earlier date compared with receiving it at a later date.

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Transaction cost

In economics and related disciplines, a transaction cost is a cost in making any economic trade when participating in a market.

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Unemployment

Unemployment is the situation of actively looking for employment but not being currently employed.

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United States Treasury security

A United States Treasury security is an IOU from the US Government.

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Volatility (finance)

In finance, volatility (symbol σ) is the degree of variation of a trading price series over time as measured by the standard deviation of logarithmic returns.

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World Bank

The World Bank (Banque mondiale) is an international financial institution that provides loans to countries of the world for capital projects.

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Yield to maturity

The yield to maturity (YTM), book yield or redemption yield of a bond or other fixed-interest security, such as gilts, is the (theoretical) internal rate of return (IRR, overall interest rate) earned by an investor who buys the bond today at the market price, assuming that the bond is held until maturity, and that all coupon and principal payments are made on schedule.

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Zero lower bound

The Zero Lower Bound (ZLB) or Zero Nominal Lower Bound (ZNLB) is a macroeconomic problem that occurs when the short-term nominal interest rate is at or near zero, causing a liquidity trap and limiting the capacity that the central bank has to stimulate economic growth.

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Certificate of confiscation, Euro area interest rate, Euro-area interest rate, Interest Rate, Interest rates, Low-interest loan, Market interest rate, NIRP, Negative interest rate, Negative interest rates, Negative interest-rate policy, Negative spread.

References

[1] https://en.wikipedia.org/wiki/Interest_rate

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