Weber reveals his monetary policy stance

In the first of three recent speeches1, Axel Weber, president of Germany's Bundesbank and a member of the governing body of the European Central Bank, investigated the suitability of the natural real rate of interest as a benchmark interest rate against which to establish whether current interest rates represent prudent monetary policy. Professor Weber eloquently demonstrated that in theory the concept of the natural real interest rate is very helpful in organising our thoughts on monetary theor