Navigating by the Stars: The Natural Rate as Economic Forecasting Tool

Alan Armen and Evan Koenig

Economic Letter, 2017, vol. 12, issue 2, 4 pages

Abstract: Fed policymakers must assess the stance of monetary policy each time they decide whether the target federal funds rate should be changed. Several different benchmark, or ?natural,? interest rates have been suggested for this purpose. The gap between the target funds rate and the natural rate should, in principle, help forecast real economic activity and inflation.

Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://fraser.stlouisfed.org/title/6362/item/607727 Full Text (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:feddel:00042

Ordering information: This journal article can be ordered from

Access Statistics for this article

More articles in Economic Letter from Federal Reserve Bank of Dallas Contact information at EDIRC.
Bibliographic data for series maintained by Amy Chapman ().