The natural real rate of interest in the euro area

Nicola Giammarioli and Natacha Valla

No 233, Working Paper Series from European Central Bank

Abstract: In this paper, we discuss the consequences of taking inot account the variations of the natural real interest rate (rt*) in simple monetary policy rules. We also provide one possible model-based analysis of the level of rt* that has prevailed in the euro area since the early 1970s, and present the implied 'real rate rate gap' as a possible additional indicator to assess the stance of monetary policy. JEL Classification: E4, E5

Keywords: euro area; monetary policy; natural rate of interest (search for similar items in EconPapers)
Date: 2003-05
Note: 98954
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Citations: View citations in EconPapers (64)

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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbwps:2003233

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