The natural real rate of interest in the euro area

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.

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Year of publication:	2003-05-01
Authors:	Giammarioli, Nicola ; Valla, Natacha
Publisher:	European Central Bank
Subject:	EU-Staaten \| EU countries \| Europäische Wirtschafts- und Währungsunion \| European Economic and Monetary Union \| Geldpolitik \| Monetary Policy \| Realzins \| Real interest rate

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Extent:	1148928 bytes 47 p. application/pdf
Series:	Working paper series / European Central Bank ; 233
Type of publication:	Book / Working Paper
Language:	English
Classification:	E4 - Money and Interest Rates ; E5 - Monetary Policy, Central Banking and the Supply of Money and Credit ; Monetary Policy ; European Economic and Monetary Union ; EU ; Individual Working Papers, Preprints
Source:	ArchiDok

Persistent link: https://www.econbiz.de/10009635981