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The neutral real interest rate is 3%, inflation is 1.3%, and the output gap is +0.7%. This means that output is 0.7% above its potential.
The neutral real interest rate is 3%, inflation is 1.3%, and the output gap is +0.7%. This means that output is 0.7% above its potential. What does the Fed rule-of-thumb suggest is an appropriate setting for the federal funds rate
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Price Theory and Applications
Authors: Steven Landsburg
9th edition
1285423526, 978-1285947877, 1285947878, 978-1285423524
