Forward-Guidance

Online First Journal of Money, Credit and Banking Online 15 Sep 2025

Monetary Policy and the Drifting Natural Rate of Interest

Sandra Daudignon · Oreste Tristani

This paper analyzes how monetary policy should respond to a long-run natural interest rate that can drift permanently — following a bounded random walk with upper bound 3 percent and lower bound 0 …

Natural Rate of Interest Effective Lower Bound Inflation Expectations Forward Guidance Monetary Policy Rules Dsge Models

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