Neutral interest rate: Difference between revisions
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imported>Doug Williamson (Create page. Sources: linked pages, Economics Help webpage https://www.economicshelp.org/blog/14955/interest-rates/the-natural-rate-of-interest/) |
imported>Doug Williamson (Add link.) |
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* [[Interest rate]] | * [[Interest rate]] | ||
* [[Monetary policy]] | * [[Monetary policy]] | ||
* [[Neutral]] | |||
* [[Overheating]] | * [[Overheating]] | ||
* [[Policy interest rate]] | * [[Policy interest rate]] | ||
Latest revision as of 21:48, 24 March 2023
Central banks - monetary policy - interest rates - policy rates.
A neutral policy interest rate is one which neither causes 'overheating' in the economy (from too low a rate), nor recession (from too high a rate).
Also known as the 'natural' interest rate.
