16 posts on "r-star"
October 21, 2022
Federal Reserve System Conference on the Financial Stability Considerations for Monetary Policy
How does monetary policy affect financial vulnerabilities and, in turn, how does the state of the financial system interact with the maximum employment and price stability goals of monetary policy? These were the key questions covered in the September 30 conference organized by the Federal Reserve System. The conference was co-led by Federal Reserve Board Vice Chair Lael Brainard and Federal Reserve Bank of New York President and CEO John C. Williams, each of whom offered prepared remarks. The program also included a panel of current and former central bank policymakers to explore the themes of the conference, as well as paper presentations with discussants. In this post, we discuss highlights of the conference. The agenda includes links to all of the presentations as well as videos for each session.
Posted at 7:00 am in Household Finance, Inflation, Monetary Policy, Systemic Risk | Permalink | Comments (1)
December 5, 2018
Just Released: Interactive R‑star Charts
With the arrival of Bank President John Williams from the San Francisco Fed, we’re now running—and sharing the output of—models he helped develop to obtain estimates of the natural rate of interest, or r-star, for the United States and other advanced economies. In the models’ definition, r-star is the real interest rate that allows an economy to expand in line with its underlying potential while keeping inflation stable.
Posted at 7:00 am in Macroeconomics | Permalink
February 7, 2018
A DSGE Perspective on Safety, Liquidity, and Low Interest Rates
Marco Del Negro, Domenico Giannone, Marc Giannoni, Abhi Gupta, Pearl Li, and Andrea Tambalotti Third of three posts The preceding two posts in this series documented that interest rates on safe and liquid assets, such as U.S. Treasury securities, have declined significantly in the past twenty years. Of course, short-term interest rates in the United […]
February 6, 2018
A Time‑Series Perspective on Safety, Liquidity, and Low Interest Rates
Brandyn Bok, Marco Del Negro, Domenico Giannone, Marc Giannoni, and Andrea Tambalotti Second of three posts The previous post in this series discussed several possible explanations for the trend decline in U.S. real interest rates since the late 1990s. We noted that while interest rates have generally come down over the past two decades, this […]
February 5, 2018
A New Perspective on Low Interest Rates
Marco Del Negro, Domenico Giannone, Marc Giannoni, and Andrea Tambalotti First of three posts Interest rates in the United States have remained at historically low levels for many years. This series of posts explores the forces behind the persistence of low rates. We briefly discuss some of the explanations advanced in the academic literature, and […]
Posted at 7:00 am in Liquidity, Macroeconomics, Monetary Policy, Treasury | Permalink | Comments (2)
February 26, 2016
From the Vault: The Path of Interest Rates
Numerous posts in the Liberty Street Economics archive cover the measurement and dynamics of the natural rate of interest as well as its use as a benchmark for calibrating monetary policy settings.
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