Comparing the FOMC’s Estimate of R-Star with Alternative Estimates

Kevin Kliesen

On the Economy from Federal Reserve Bank of St. Louis

Abstract: The neutral real interest rate—also called r-star—is the theoretical rate prevailing when maximum employment and 2% inflation are reached. How is this 'unobservable' rate estimated?

Keywords: neutral real interest rate; r-star (search for similar items in EconPapers)
Date: 2026-05-04
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Persistent link: https://EconPapers.repec.org/RePEc:fip:l00001:103131

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