Search Results

SORT BY: PREVIOUS / NEXT
Keywords:Potential Output 

Working Paper
What Can the Data Tell Us About the Equilibrium Real Interest Rate?

The equilibrium real interest rate (r*) is the short-term real interest rate that, in the long run, is consistent with aggregate production at potential and stable inflation. Estimation of r* faces considerable econometric and empirical challenges. On the econometric front, classical inference confronts the "pile-up" problem. Empirically, the co-movement of output, inflation, unemployment, and real interest rates is too weak to yield precise estimates of r*. These challenges are addressed by applying Bayesian methods and examining the role of several "demand shifters", including asset ...
Finance and Economics Discussion Series , Paper 2015-77

FILTER BY Content Type

FILTER BY Author

FILTER BY Jel Classification

E30 1 items

E40 1 items

E50 1 items

PREVIOUS / NEXT