How to raise r*?SUERF-BAFFI Bocconi-OeNB workshop
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.
Date: Wednesday, 15 September 2021, 09:00-12:15 CET
Venue: Online via Cisco Webex
More information about the program and how to register can be found on the SUERF website.