Excellent post with an interesting historical perspective on the definition of the neutral/natural rate of interest. I would add that it is also important to keep into account global dimensions (both in terms of real and financial integration). These becomes particularly relevant for open economies and would add probably a further word of caution in relying on this concept.
Excellent post with an interesting historical perspective on the definition of the neutral/natural rate of interest. I would add that it is also important to keep into account global dimensions (both in terms of real and financial integration). These becomes particularly relevant for open economies and would add probably a further word of caution in relying on this concept.
I absolutely agree