Finnish paper presents two explanations for eurozone weakness

bank-of-finland
The Bank of Finland

A paper published in the Bank of Finland’s Economic Review presents two contrasting explanations for the current weak state of demand in the eurozone.

In Two tales of the natural rate of interest, Lauri Vilmi uses two specifications of a “simple semi-structural macroeconomic model” to estimate the eurozone’s long-term natural rate of interest.

In the first estimation, the author says, the key factor is “persistent, recurring negative shocks to the output gap that restrain growth even when

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.