A great deal of significance has been attached to the fall in r*, which is the current preferred term for what was known as the natural rate of interest. My belief is that this fall is not due to structural factors in the real economy, rather it is an artefact of the means of estimating r*, as well as the reaction function of New Keynesian central bankers....Bond Economics
Falling r* Is No Accident
Brian Romanchuk
2 comments:
Maybe r* evolved from the apes by random chance too?
Sometimes the rate is 2 or 0.2.... AND chimpanzees have 2 eyes, 2 arms .... hmmmm both have 2s...
Maybe the rate comes from chimpanzees?
Darwinians any thoughts?
Gimme five...
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