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Measuring the Equilibrium Real Interest Rate
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Vol. 34, No. 1, 2010
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Last Updated: 02/05/2010

Measuring the Equilibrium Real Interest Rate

Alejandro Justiniano, Giorgio E. Primiceri

The equilibrium real interest rate represents the real rate of return required to keep the economy’s output equal to potential output. This article discusses how to measure the equilibrium real interest rate, using an empirical structural model of the economy.

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