27 - Claudio Borio on Financial Stability, the Triffin Dilemma, and International Monetary Policy
Macro Musings with David Beckworth
00:00
The Natural Rate Is the Cause of Major Financial Instability
The notion of equilibrium, or natural rates, goes back to elixir and its basically lresay is a modern, modern incarnation of ovixual story. It's the real rate that equates output at potential and makes the inflation stable,. The two things being equivalent. This notion the natural rate has also given a rise to the view, which i'm sure you have come across, that the a rate is very, very low, possibly even negative. And this is a view that sames has put forward in er in his sexular stagnation hypothesis.
Transcript
Play full episode
