Monetary Policy and The Medium-Run Natural Rate - San Francisco Fed

Monetary Policy and The Medium-Run Natural Rate

The natural rate of interest is an elusive concept in theory and practice.

However, it is essential for central banks’ calibration of the policy rate.

Source: Federal Reserve Bank of San Francisco.

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Author summary: Natural rate of interest concept.

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Federal Reserve Bank of San Francisco Federal Reserve Bank of San Francisco — 2025-10-17

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