Money As Indicator for the Natural Rate of Interest:
The natural interest rate is of great relevance to central banks, but it is difficult to measure. We show that in a standard microfounded monetary model, the natural interest rate co-moves with a transformation of the money demand that can be computed from actual data. The co-movement is of a consid...
Gespeichert in:
1. Verfasser: | |
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Format: | Elektronisch E-Book |
Sprache: | English |
Veröffentlicht: |
Washington, D.C
International Monetary Fund
2012
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Schriftenreihe: | IMF Working Papers
Working Paper No. 12/6 |
Online-Zugang: | UBW01 UEI01 LCO01 SBR01 UER01 SBG01 UBG01 FAN01 UBT01 FKE01 UBY01 UBA01 FLA01 UBM01 UPA01 UBR01 FHA01 FNU01 BSB01 TUM01 Volltext |
Zusammenfassung: | The natural interest rate is of great relevance to central banks, but it is difficult to measure. We show that in a standard microfounded monetary model, the natural interest rate co-moves with a transformation of the money demand that can be computed from actual data. The co-movement is of a considerable magnitude and independent of monetary policy. An optimizing central bank that does not observe the natural interest rate can take advantage of this co-movement by incorporating the transformed money demand, in addition to the observed output gap and inflation, into a simple but optimal interest rate rule. Combining the transformed money demand and the observed output gap provides the best information about the natural interest rate |
Beschreibung: | 1 Online-Ressource (52 p) |
ISBN: | 1463930550 9781463930554 |
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spelling | Berger, Helge Verfasser aut Money As Indicator for the Natural Rate of Interest Berger, Helge Washington, D.C International Monetary Fund 2012 1 Online-Ressource (52 p) txt rdacontent c rdamedia cr rdacarrier IMF Working Papers Working Paper No. 12/6 The natural interest rate is of great relevance to central banks, but it is difficult to measure. We show that in a standard microfounded monetary model, the natural interest rate co-moves with a transformation of the money demand that can be computed from actual data. The co-movement is of a considerable magnitude and independent of monetary policy. An optimizing central bank that does not observe the natural interest rate can take advantage of this co-movement by incorporating the transformed money demand, in addition to the observed output gap and inflation, into a simple but optimal interest rate rule. Combining the transformed money demand and the observed output gap provides the best information about the natural interest rate Online-Ausg Weber, Henning Sonstige oth http://elibrary.imf.org/view/IMF001/12448-9781463930554/12448-9781463930554/12448-9781463930554.xml Verlag URL des Erstveröffentlichers Volltext |
spellingShingle | Berger, Helge Money As Indicator for the Natural Rate of Interest |
title | Money As Indicator for the Natural Rate of Interest |
title_auth | Money As Indicator for the Natural Rate of Interest |
title_exact_search | Money As Indicator for the Natural Rate of Interest |
title_exact_search_txtP | Money As Indicator for the Natural Rate of Interest |
title_full | Money As Indicator for the Natural Rate of Interest Berger, Helge |
title_fullStr | Money As Indicator for the Natural Rate of Interest Berger, Helge |
title_full_unstemmed | Money As Indicator for the Natural Rate of Interest Berger, Helge |
title_short | Money As Indicator for the Natural Rate of Interest |
title_sort | money as indicator for the natural rate of interest |
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