note that its changes in prices during 2008 that, Macroeconomics

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note that its changes in prices during 2008 that

Note that it's changes in prices during 2008 that matter for the high real interest rate (time period when your deposit is earning interest). This means that you can never know how high the real rate is actually going to be when you start to save on 1st January 2008 though you know the nominal interest rate exactly. Crucial to determination of the real rate is the expected inflation - inflation expected in the year you save.

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Macroeconomics: note that its changes in prices during 2008 that

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