Garnier, Julien; Wilhelmsen, Bjorn-Roger - 2021
The notion of a natural real rate of interest, due to Wicksell (1936), is widely used in current central bank research … the natural real interest rate and the output gap in the euro area over the past 40 years. Our results suggest that the … natural rate of interest has declined gradually over the past 40 years. They also indicate that monetary policy in the euro …