Falling natural rates impacted by common global factors – Fed paper
Researchers see "no evidence" of downward trend reversing
Researchers at the Federal Reserve have extended a model of the natural rate of interest to a larger group of countries, finding the rate to be falling across advanced economies and driven by common global factors.
Measuring the natural rate of interest, by Kathryn Holston, Thomas Laubach and John Williams, estimates the natural rate, or the interest rate that holds when the economy is in long-run equilibrium, for the US, UK, Canada and the eurozone. In line with other studies, the authors find
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