This paper suggests that the near-optimal setting of the real policy rate of interest (the real overnight rate in Basil Moore's home country of Canada) is zero. This will achieve as close an approximation as possible to a fair distribution of income in a particular sense. It will also promote...

This note is a brief reply to , who has been critical of the conceptual foundations and methodology in a discussion of the impact of different interest rate policy rules on inflation in . The reply concludes that the case for a 'zero real policy rate of interest' (ZRPR), rather than a 'zero...