Pakistonomy - Episode 149 - Is the US on the brink of another financial crisis?
Pakistonomy
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The Neutral Real Interest Rate and the Productivity Effects
As a monetary economist, we would talk about the neutral real interest rate. And that's when you see inflation fall and growth be more restricted. But as this neutral real rate has fallen because of the demographic effects,. what that means is that it's pushed policy rates globally lower. In fact, closer to what's often referred to as the effective lower bound of zero.
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