Growth prospects, the natural interest rate, and monetary policy

Abstract: The recovery from the Global Financial Crisis was characterized by sluggish output growth and by inflation remaining persistently below the inflation targets of central banks in many advanced economies despite an unprecedented monetary expansion. Ten years after the Global Financial Crisis, GDP remains below its pre-crisis trend in many economies and interest rates continue to be very low. This raises the question of whether low GDP growth and low interest rates are a temporary phenomenon or are due to a decline in long-run growth prospects (potential output growth) and equilibrium real interest rates (natural interest rate). Addressing this question is important for central banks for conducting monetary policy and adjusting their strategy. In this paper, the authors address this question based on a review of the literature and an evaluation of the most recent data and discuss implications for monetary policy.

Object Details

• Location: Deutsche Nationalbibliothek Frankfurt am Main
• Extent: Online-Ressource
• Language: Englisch

References and Relationships

• Bibliographic citation: Growth prospects, the natural interest rate, and monetary policy ; volume:13 ; number:1 ; year:2019 ; extent:35 ; Economics / Journal articles. Journal articles ; 13, Heft 1 (2019) (gesamt 35)

Contributors, Places and Time

• Creator: Fiedler, Salomon ; Gern, Klaus-Jürgen ; Jannsen, Nils ; Wolters, Maik H.

Further information

• DOI: 10.5018/economics-ejournal.ja.2019-35
• URN: urn:nbn:de:101:1-2412131031048.441671302269
• Rights: Open Access; Der Zugriff auf das Objekt ist unbeschränkt möglich.
• Last update: 15.08.2025, 7:30 AM CEST