Neutral interest rates in the post-crisis period

Release date
01/11/2013
Reference
AN2013/07
Authors
Willy Chetwin; Amy Wood
ISSN
2230‐5505
Estimates of neutral interest rates play a useful role in thinking about monetary policy. This note explores the concept of a neutral interest rate and provides some simple empirical illustrations of the trend decline in neutral rates, here and abroad, over the last couple of decades.