Nominal

Nominal

In name only. Differences in compounding cause the nominal rate to differ from the effective interest rate. Inflation causes the purchasing power of money to differ from one time to another.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Nominal

Describing a variable that does not take inflation into account. For example, when considering GDP growth, if GDP has grown 10% in nominal terms and the inflation rate is 3%, real GDP growth is only 7%.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
Mentioned in
Copyright © 2003-2025 Farlex, Inc Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.