raunávöxtunar
Raunávöxtunar is an Icelandic term that translates to "real interest rate". It represents the increase in purchasing power of an investment or loan after accounting for inflation. In simpler terms, it's the difference between the nominal interest rate and the rate of inflation.
For example, if a savings account offers a nominal interest rate of 5% and the inflation rate
Understanding raunávöxtunar is crucial for both borrowers and lenders. For savers, a positive raunávöxtunar indicates that
Economists and policymakers closely monitor raunávöxtunar as it provides insights into the health of the economy