Measuring the Natural Rate of Interest: The Role of Inflation Expectations
Posted: 13 Aug 2020
Date Written: June 29, 2020
Abstract
The "natural" or equilibrium real rate of interest is an important concept in macroeconomics. On the one hand, the natural (real) rate provides a description of the real interest rate path consistent with the eventual full capacity of utilization of available resources in the context of low and stable inflation.
Suggested Citation: Suggested Citation
Lopez-Salido, David and Sanz-Maldonado, Gerardo and Schippits, Carly and Wei, Min, Measuring the Natural Rate of Interest: The Role of Inflation Expectations (June 29, 2020). FEDS Notes No. 2020-06-19 https://doi.org/10.17016/2380-7172.2593, Available at SSRN: https://ssrn.com/abstract=3673516
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