Lawler: More on the “Neutral” Interest Rate (R*)
From housing economist Tom Lawler:
More on the “Neutral” Interest Rate (R*)
Executive Summary: Policymakers and financial analysts looking for “models” as a guide for assessing the neutral interest rate are faced with a dilemma: various models produce significantly different results, and it is far from clear which if any model is the “most” accurate. Whi…