4 ms·
Is there such a natural level for interest rates?
by darkerside 4y ago
Is there such a natural level for interest rates?
- blitzar 4y agoYes, but its economic theory ... so no. https://en.wikipedia.org/wiki/Neutral_rate_of_interest https://en.wikipedia.org/wiki/Neutral_rate_of_interest (also known as r*) Naturally I have taken a few liberties with the theory - inflation +/- r* would be the correct rate for the economy. As a quick calculation, it wouldnt be unfair to say interest rate == inflation is a balanced monetary policy.