Briefing
Examining the Differences in r* Estimates
Abstract: With inflation declining over the course of the year and the Federal Open Market Committee (FOMC) seemingly in the process of normalizing policy, a key question is: What is the natural real rate of interest (denoted r*)? In this article, we will shed light on what r* means, what models are used to estimate it and what the benefits and drawbacks are for these models.
Keywords: r star; economic growth; monetary policy;
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https://www.richmondfed.org/publications/research/economic_brief/2024/eb_24-36
Description: Briefing
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Bibliographic Information
Provider: Federal Reserve Bank of Richmond
Part of Series: Richmond Fed Economic Brief
Publication Date: 2024-11
Volume: 24
Issue: 36