Cukierman, Alex, (2016), “Reflections on the natural rate of interest, its measurement, monetary policy and the zero lower bound”, VoxEu, 15 Οκτωβρίου
The decline in long-term interest rates has nurtured the view of a persistent shift of the natural rate into negative territory. This column argues that existing estimates of the natural rate, based on the New Keynesian model, are likely to be biased downward. It makes a case for introducing long-term risky natural rates into the analysis of monetary policy, which could shed more light on the role of risk attitudes, the structure of financial institutions, and regulation in the determination of potential output and economic activity.
Σχετικές Αναρτήσεις
- Dordal i Carreras, Marc, Coibion, Olivier, Gorodnichenko, Yuriy,Wieland, Johannes, (2016), “Infrequent but long-lived zero-bound episodes and the optimal rate of inflation”, VoxEu, 21 September
- Tenebrarum, P. (2014) “The Consequences of Imposing Negative Interest Rates”, Acting Man Blog, 21 November.