Speech

\"The Monetary Policy Implications of a Low R-Star: An Update,\" Joint DNB/ECB Workshop on the Natural Rate of Interest, De Nederlandsche Bank, Amsterdam, Netherlands.


Abstract: r* is, in practice, a low-frequency trend measure of a short-term real interest rate, and this talk will take a regime-switching view of this issue.{{p}}Observed low real interest rates are associated with government debt, not necessarily with capital.{{p}}There appears to be a large demand for safe assets globally, and this may be the largest factor driving real interest rates to low levels in the past three decades.{{p}}There is only modest evidence that key trends influencing the natural rate of interest are changing today.

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Provider: Federal Reserve Bank of St. Louis

Part of Series: Speech

Publication Date: 2019-05-16

Number: 339