IMF paper finds falling r* should eventually reverse
The decline in the natural rate of interest, r*, may reverse in the coming years and could be helped by policy actions, according to research published by the International Monetary Fund.
Josef Platzer and Marcel Peruffo design a model featuring heterogeneous agents, overlapping generations and “non-homothetic preferences”, meaning that different households have different responses to changes in income.
They explore the main factors suggested in the economic literature as driving down the
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 print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
Most read
- Initiative of the year: the Netherlands Bank’s ChatDNB
- Central Banking Awards 2024: fourth round announced
- Central bank of the year: Central Bank of Brazil