Obstfeld argues central banks’ rate models are ‘conceptually flawed’
Former IMF chief economist says rates could soon return to the effective lower bound
Many of the analytical frameworks used by central banks are “conceptually flawed” as they fail to capture the full range of forces acting on interest rates, Maurice Obstfeld argues in new research.
Obstfeld, who was chief economist for the International Monetary Fund between 2015 and 2018, says central banks should consider a broader range of factors when setting monetary policy.
“The drivers of global real interest rates are multiple and changing,” Obstfeld says in the paper, which he presented
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
- Central banks prepare for the rise of AI
- BIS’s Zhang Tao on why Asian central banks favour a broader policy mix
- Central bank of the year: Central Bank of Brazil