3 ms·
The natural rate would be fluctuating due to time preference and expected risk, but even if the natural rate was low, it wouldn't be zero. That's absurd. Centr
by gridlockd 7y ago
The natural rate would be fluctuating due to time preference and expected risk, but even if the natural rate was low, it wouldn't be zero. That's absurd.
Central banks attempt to adjust interest rates to keep inflation at a target rate, which is a balancing act between maintaining a stable currency and stimulating (or resuscitating) an economy.