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/) |
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Revision as of 22:46, 8 June 2020
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.
