EXPECTED REAL INTEREST RATE

The nominal rate minus the expected inflation rate.

Country 3-Month Interest Inflation Rate Expected Rate over last 3 real rate months of interest

Australia 8.12 3.3 4.82

Belgium 5.13 2.4 2.73

Canada 7.86 4.2 3.66

Denmark 6.95 2.1 4.85

France 7.80 2.3 5.50

Germany 4.65 3.9 0.75

Italy 11.00 6.3 4.70

Japan 1.36 -1.7 3.06

Spain 9.28 7.9 1.38

United States 6.08 3.3 2.78

Source : The Economist, April 29, 1995, pp122-23

Previous slide

Next slide

Back to first slide

View graphic version