Wednesday, April 18, 2012

Michael Sankowski on the natural rate of interest


Mike has been going after the natural rate of interest for some time. Here is some of his latest thinking with a promise of more to come.

NAIRU, which the Fed uses along with a Taylor rule,  is based on supposed but unobservable natural rate of interest and the natural rate of unemployment.

Read it at Modern Monetary Realism
Depression is a Choice because Low Inflation is the Wrong Goal Part I
by Michael Sankowski

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