The Natural Real Rate of Interest in the Euro Area
By Nicola Giammarioli, Natacha Valla. Social Science Research Network, 2003
128 citations recorded by the source corpus.
In this paper, we discuss the consequences of taking inot account the variations of the natural real interest rate (rt*) in simple monetary policy rules. We also provide one possible model-based analysis of the level of rt* that has prevailed in the euro area since the early 1970s, and present the implied 'real rate rate gap' as a possible additional indicator to assess the stance of monetary policy. JEL Classification: E4, E5
Subfields: Economics and Econometrics
View Paper: https://www.semanticscholar.org/paper/d8528b70e88b8676cc8be00f9e5c6d3c240526f5
How researchers see this paper
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In Economics and Econometrics
- Bjørn-Roger Wilhelmsen
- Jean-Stéphane Mésonnier
- Julien Garnier
- Jean-Paul Renne
- T. Wollmershaeuser
- Jan-Egbert Sturm
Citations in the corpus
- The Natural Real Interest Rate and the Output Gap in the Euro Area: A Joint Estimation (2005, background): “This group of papers, which includes Giammarioli and Valla (2003), Mésonnier and Renne (2004), Neiss and Nelson (2003), Sevilliano and Simon (2004) and LW, associate the fluctuations in the natural real interest rate with the evolution of real fundamentals such as determinants of trend GDP growth…”
- A Time Varying Natural Rate of Interest for the Euro Area (2007, background): “Be that as it may, Neiss and Nelson (2001) for the UK as well as Giammarioli and Valla (2003) for the euro area provide promising results suggesting that their interest rate gap estimates have an informational content for in ation that could be used for policy purpose.”