The equilibrium interest rate
Книги

The equilibrium interest rate

Книги

The equilibrium interest rate

The equilibrium interest rate [a measurement for Russia] / D. A. Kreptsev, A. S. Porshakov, S. M. Seleznev, A. A. Sinyakov; The Central Bank of the Russian Federation. — Moscow : Bank of Russia, 2016. — 55 p.. — (Working Paper Series; № 13 / july). — References: p. 35-37.

Аннотация

Starting from Woodford’s research (1999), the equilibrium interest rate has been an integral component of all macroeconomic models used for decision-making in a monetary course. For all its theoretical importance, as central banks pursue their policies they will often refrain from publicly referring to this concept. This prevents an external observer from understanding the importance central banks attach to the actual to equilibrium rate comparison in the course of their rate decision-making. The key difficulty for central banks stems from the high uncertainty in measuring the equilibrium interest rate (extended confidence intervals of estimates), which holds true for other unobserved indicators, e.g., potential GDP. It also concerns difficulties related to the identification of key drivers weighing on the equilibrium real rate, in particular, those connected with the business to financial cycle correlation (see the criticisms of the equilibrium rate concept in the research by Borio (2015)).
  • УДК:
    336.711(470)

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