Money As Indicator for the Natural Rate of Interest /

The natural interest rate is of great relevance to central banks, but it is difficult to measure. We show that in a standard microfounded monetary model, the natural interest rate co-moves with a transformation of the money demand that can be computed from actual data. The co-movement is of a consid...

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Bibliographic Details
Main Author: Berger, Helge
Other Authors: Weber, Henning
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2012.
Series:IMF Working Papers; Working Paper ; No. 2012/006
Online Access:Full text available on IMF