Economics, Econometrics and Finance
4 years ago

Unveiling the Natural Rate of Interest: A Game Changer for Monetary Policy

SSRN Electronic Journal
Estimating the Natural Rate of Interest: A SVAR Approach
Michał Brzoza‐Brzezina

Paper Summary

The article estimates the natural rate of interest by analyzing historical data using a specific statistical model. The natural rate of interest varies significantly over time and tends to move in the same direction as the real interest rate. The difference between the natural and real interest rates can help gauge the effectiveness of monetary policy.

Related papers

Economics, Econometrics and Finance
4 years ago

Monetary policy tweaks could reshape interest rates and boost economy

Macroeconomic Analysis
Monetary Models
Macroeconomic Trends
2 views
Economics, Econometrics and Finance
4 years ago

New study reveals key indicator for predicting future inflation and deflation.

Macroeconomic Analysis
Macroeconomic Trends
1 view
Economics, Econometrics and Finance
4 years ago

Low interest rates render traditional economic analysis ineffective, study finds.

Macroeconomic Analysis
2 views