Ertl, Martin; Rabitsch, Katrin - 2024
We explore the natural rate of interest, shortly r ∗ , in emerging economies. If economic growth originates from … convergence, then growth, say, from technological progress will be lower than we find in the data and, hence, r ∗ will be lower …. Ignoring convergence upwardly biases our estimates of r ∗ . We extend the New Keynesian small open economy model to take …