Economists define the natural interest rate as "the interest rate that supports the economy at full employment/maximum output while keeping inflation constant"[wikipedia]
For the last decade we've seen very little time at full employment and absolutely no accelerating inflation by any standard measure. So by any textbook definition of a natural interest rate we've been keeping interest rates too high.
Economists define the natural interest rate as "the interest rate that supports the economy at full employment/maximum output while keeping inflation constant"[wikipedia]
For the last decade we've seen very little time at full employment and absolutely no accelerating inflation by any standard measure. So by any textbook definition of a natural interest rate we've been keeping interest rates too high.