Summary: In this paper, we discuss the consequences of taking into account the variations of the natural real interest rate (r t *) in simple monetary policy rules. We also provide one possible model-based analysis of the level of r t * that has prevailed in the euro area since the early 1970s, and present the implied "real rate gap" as a possible additional indicator to assess the stance of monetary policy.
Physical Description: 1148928 bytes
47 p.

Saved in bookmark lists

Similar items by author

Questions? LIVE CHAT