Natural-Rate-of-Interest

Veronica Backer-Peral · Jonathon Hazell · Atif Mian

Each month a fraction of UK property leases are extended by 90 years or more, creating thousands of natural experiments in which the same property’s rent and capital value are revealed …

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 …

Michael T. Kiley

This paper examines optimal monetary policy under discretion when the loss function is asymmetric — placing greater weight on employment shortfalls than on equivalently sized employment strength. The …

Mikhail Chernov · Lars A. Lochstoer · Dongho Song

Layer 1: Overview This paper proposes and measures the zero-beta rate — the expected return on a portfolio of stocks with zero market beta, constructed to be orthogonal to the SDF innovations spanned …