"Real" interest rates are high in Japan, even though the nominal cost of money is almost zilch.
The nominal cost of money went up and up, and so did prices.
If a central bank creates too much credit, the nominal cost of money eventually rises and investment patterns are skewed.
In most developing countries, contraception is in theory available to the indigent either free or at nominal cost through state agencies.
Conversely, if a currency is cheapened, the nominal cost of everything rises.
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But, as the 1970s and early 1980s agonizingly demonstrated, increasing the nominal cost of money does not necessarily undo the debauching of the dollar.
Of course if the franc, yen or yuan are rising, then the nominal cost of imports necessary to make that which they produce declines in currency terms.
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But, suppose Antigua does in fact proceed to make U.S.-copyrighted movies and music available at nominal or even no cost to anyone in the world with an Internet connection.
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However, depending on your age, driving record and place of residence, that additional cost may be nominal.
But Germany's Postbank can transfer money almost anywhere in the world within two working days for only a nominal fee, and at no cost to the recipient (if there is a postal- banking system in the receiving country).
Other custodians (Schwab, Fidelity) will execute a large number of high quality low cost proprietary ETFs for no charge while imposing nominal ticket charges on the rest of the ETF universe.
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While victims with nominal amounts of gains may escape prosecution due to the cost of litigation, investors with tens or hundreds of thousands of dollars in gains may not be so lucky.
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You need to read the speech for the full explanation, but the basic idea is that higher inflation can help push down the real cost of borrowing - the real interest rate - at times when nominal interest rates can't go any lower.
Workers are almost never asked to take nominal pay cuts, but when prices are rising, most employers do give their employees cost-of-living increases.
Once a new unit is built, the operational costs are nominal and over a 40-year time period, such facilities have proven to be cost effective.
In effect, moving to nominal GDP targets would send a signal that the Bank was determined to get back the nominal growth in the economy that has been lost, even if it is at the cost of pushing inflation above 2% for a sustained period of time.
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