The role of the natural rate of interest in monetary policy
By: by Jeffery D. Amato.
Contributors: Bank for International Settlements. Monetary and Economic Dept.
Series: BIS working papers,; no. 171; BIS working papers (Online) ;; no. 171.
Publisher: Bank for International Settlements
Published: 2005
Place of publication: Basel, Switzerland
Language: eng
Format: Electronic resource
Description: This paper examines the role of the natural rate of interest in the conduct of monetary policy. The natural rate figures prominently in many theories of the business cycle and of inflation fluctuations, and therefore has the potential to play a key role in monetary policy given the current mandates of many central banks. However, the presence of financial imperfections and measurement uncertainty draw into question whether estimates of the natural rate can be reliable indicators of excess demand pressures. Natural rate-based theories may, nonetheless, provide useful guidance in the formulation of desirable monetary policies.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file (viewed on Mar. 23, 2005).
"Monetary and Economic Department."
"March 2005."
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.