What is the difference between nominal and real interest? Black= Nominal, Red =Inflation rate, Blue = real yield For the past four decades, inflation has been subdued and there hasn’t been much of a reason to learn the difference between nominal and real interest rates. That’s because both numbers were close to the same. Now, thanks to rapid and rising inflation, that’s all changed. But first let’s define the two. The nominal interest rate is … read more Nominal vs Real Yield