WebEx
There is consensus among the economics profession that r* – the equilibrium rate of interest at which inflation is stable – has strongly declined over past decades – more so in Europe than in the US. While r* in itself is not a policy goal, its currently estimated low level is widely perceived to pose several challenges, including eroding policy space for monetary policy, lower returns for savers and institutional investors as well as banks, and potential negative consequences for resource allocation and productivity. So, what can be done to exit from this “low r* trap”? This workshop explores the interaction of economic policies with r* and policy options to raise r*, against the backdrop of economic trends which may affect the further development of r* going forward.
Scientific Committee
Ernest Gnan (OeNB and SUERF), Robert Holzmann, Kilian Rieder and Maria Teresa Valderrama (OeNB).
Keynote Lecture: Navigating by r*: safe or hazardous?
Claudio Borio, BIS I SUERF Fellow presentationSUERF Policy Note, No 255 – Navigating by r*: safe or hazardous?
Fiscal policies, monetary and fiscal policy interactions and r*
Isabel Vansteenkiste, ECB I SUERF presentationKeynote Lecture: Just a temporary trough? Long-term scenarios for the future development of r*
Charles Goodhart, LSE I SUERF Fellow presentationImpact of climate change/protection, digitalization and (de)globalization on r*
Cornelia Holthausen, ECB and Javier J. Pérez, Banco de España,Cornelia Holthausen, ECB (pdf – presentation)
Javier J. Pérez, Banco de España (pdf – presentation)
The circular relationship between productivity growth and real interest rates
Gilbert Cette, Banque de France, AMSE and NEOMA Business School presentation
