(inflation-adjusted) interest rate

Here, one must consider not only the nominal interest rate, but also the real (inflation-adjusted) interest rate. A very low – or even negative – nominal interest rate could produce a positive real return for a saver, if prices fall sufficiently. In fact, Japanese savers have been benefiting from this phenomenon for more than a decade, reaping higher real returns than their counterparts in the US, even though Japan’s near-zero nominal interest rates are much lower than America’s.