Because the certainty-equivalence principle assumes knowledge of the true model of the economy, it implies precise knowledge of the equations determining unobserved variables such as the natural rates of interest
and unemployment, a requirement that is surely not satisfied in the case of monetary policymaking.
S&S advanced three principal conclusions: (1) there was no convincing, circumstantial evidence of a significant increase in the unobserved, expected real rate of interest to explain the higher nominal rates of interest
; (2) the percentage point increases in four average rates of interest
after 1966 were not significantly different from the percentage point increase in the average rate of inflation; (3) the higher, average rate of inflation after 1966 was fully explained by more rapid monetary growth, having nothing to do with any increase in velocity V or slowdown in the growth of real GNP, Y, as suggested by the equation of exchange:
Interest netting issues arise because of the difference in the rates of interest
charged on over- and underpayments of tax.
But both have removed their accounts from building societies because the rates of interest
on offer are so low.
816(b)(1)(A), qualification as a life insurance reserve requires, among other things, computation or estimation "on the basis of recognized mortality or morbidity tables and assumed rates of interest
Anfang said there is a lot of investor money sitting in bonds and treasuries at low rates of interest
, and he expects the tax lien sales to be attractive as the investors could receive more interest through the lien certificate purchase.
The bonds initially bear interest in the daily rate mode but may be converted to weekly, flexible, auction, or fixed rates of interest
Accordingly, the new rates of interest
on car loans shall be base rate +1% (at present 11.
So, it was beyond the pocket of the customers to buy a property at these rates of interest
Current law imposes various rates of interest
ranging from the short-term applicable federal rate (AFR) plus 0.
Thus, over the past several years, attention has shifted to M2, where some success has been achieved in modeling aggregate M2 as a function of nominal income or consumption and the opportunity cost, defined as the excess of market rates of interest
over the rates paid on M2 components.
The bonds initially bear interest in the weekly rate mode, but may be converted to daily, multi-annual, or fixed rates of interest
The bonds initially bear interest in the weekly rate mode but may be converted to daily, flexible, auction, or fixed rates of interest