Charting the Path of Interest Rates
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Thomas Lubik and Christian Matthes discuss how economists wrestle with measuring the natural rate of interest or r-star, why this measure is important for monetary policymakers, and how their model has evolved to better chart the path of interest rates. Lubik is a senior advisor at the Federal Reserve Bank of Richmond and Matthes is a professor of economics at Indiana University. Full transcript and related links: https://www.richmondfed.org/podcasts/speaking_of_the_economy/2024/speaking_2024_01_10_natural_rate
Charting the Path of Interest Rates