Vector autoregression

Estimates of the natural interest rate for the euro area: an update

Retrieved on: 
torsdag, februari 8, 2024

The natural rate of interest is defined as the real rate of interest that is neither expansionary nor contractionary.

Key Points: 
  • The natural rate of interest is defined as the real rate of interest that is neither expansionary nor contractionary.
  • A wide range of estimates obtained from a suite of models and approaches suggests that cyclical measures of euro area r* have been edging higher recently.