The phrase “reference rate” refers to the base rate against which other interest rates are pegged.
The overall reference rate may be LIBOR to be used as reference in interest rate swaps or interest rate agreements.
LIBOR is the London Interbank Lending Rate, which is used as the base rate for many other interest rates.
Reference rates are used in an adjustable rate mortgage (ARM), in which the borrower’s interest rate is the base rate - usually the prime rate - added to an additional set amount called the spread.
Euribor is the interbank overnight rate, which consists of the average interest rates of a number of major European banks, which are used to lend to each other in euros.
The Fisher Effect is an economic theory created by economist Irving Fisher that describes the relationship between inflation and real and nominal interest rates.
A liquidity trap is when monetary policy becomes ineffective due to very low interest rates combined with consumers choosing to save rather than invest in higher yielding bonds or other investments.
M3 is the total money supply, which includes M2 money as well as large time deposits, institutional money market funds, short-term repurchase agreements and larger liquid funds.