The Neutral Interest Rate: A Moving Target

An episode of the The Week That Was in Europe podcast, hosted by Klaus Adam and Dirk Schumacher, titled "The Neutral Interest Rate: A Moving Target" was published on April 26, 2024 and runs 18 minutes.

April 26, 2024 ·18m · The Week That Was in Europe

0:00 / 0:00

Summary

The neutral rate is relevant for understaning the stance of monetary policy and for the fiscal outlook, as it determines the financing conditions for government debt. We explain how the neutral rate is defined, discuss its economic determinants and provide estimates of how it has changed since the pre-pandemic period. Increased government debt supply appears to have excerted substantial upward pressure on the neutral rate. We make reference to the following papers: Thiago Ferreira and Samer Shousha titled “The supply of safe assets and global interest rates” , Journal of International Economics, 2023. Atif Mian, Ludwig Straub, and Amir Sufi. titled “What explains the decline in r*? Rising income inequality versus demographic shifts.” Proceedings of the Jackson Hole Symposium, 2021.

Episode Description

The neutral rate is relevant for understaning the stance of monetary policy and for the fiscal outlook, as it determines the financing conditions for government debt. We explain how the neutral rate is defined, discuss its economic determinants and provide estimates of how it has changed since the pre-pandemic period. Increased government debt supply appears to have excerted substantial upward pressure on the neutral rate.

We make reference to the following papers:

Thiago Ferreira and Samer Shousha titled “The supply of safe assets and global interest rates” , Journal of International Economics, 2023.

Atif Mian, Ludwig Straub, and Amir Sufi. titled “What explains the decline in r*? Rising income inequality versus demographic shifts.” Proceedings of the Jackson Hole Symposium, 2021.

Share this episode

Similar Episodes

Michigan Natty, Roy Out for the Isles, Yankee Lineup Issues

Apr 9, 2026 ·57m

March Gone Mad, Isles Slid, Yanks Hot Start

Apr 3, 2026 ·49m

The Madness is Upon Us, WBC Heartbreak!

Mar 20, 2026 ·46m

U-S-A! Schaefer Dazzles, Islander Trade Deadline Decisions

Mar 4, 2026 ·59m

USA! NBA All Star Game, Yankee Roster Issues

Feb 19, 2026 ·42m

Super Bowl Super Disappointment, Rangers Downfall, Winter Olympics

Feb 12, 2026 ·53m

Similar Podcasts

RISE IN RED | The SFU Red Leafs Hockey Podcast SFU Red Leafs Hockey The official podcast of Simon Fraser University Red Leafs Hockey, hosted by Nick Toren and Mark Coletta, presented by Cioffi's Deli and Scoff's Hockey | Recapping the week that was in Red Leaf Hockey, plus Nick and Mark tackle various topics in "Dump 'n Change", where anything goes | Host Mark Coletta: Head Coach since 2009; Hockey Canada HP2 Coaching Certified, 2016; Plattsburgh St. Hockey NCAA National Champion, 2001 | Host Nick Toren: Broadcaster since 2014; BCIT Radio & Broadcast, 2014 | Producer Jake Friedrich: Digital Manager since 2019; SFU Comms 2022; Vancouver Canucks Social, 2022-'23 Triple Dribble Jai Nads Lokie Each week, three mates dive into the good, bad, ugly and just plain weird moments of the NBA. We offer our takes on the 'week that was' in the world of basketball, sometimes ending in spicy buzzer moments. A great listen for those who are new to following the NBA, or for those who simply want an easy listen on basketball. A to Z Podcast NY Sports New York Centric Sports Talk Show. The boys break down the week that was in New York Sports with insight into the Jets, Giants, Islanders, Rangers, Yankees, Mets, and Knicks. Weighing In: The Podcast Andrew Waite Daily Gazette news columnist Andrew Waite shares insights and analysis from the week that was.

URL copied to clipboard!