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A Peer-reviewed scientific articles/A1 Journal article (refereed), original research
      
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Monetary Policy, the Financial Cycle, and Ultra-Low Interest Rates, International Journal of Central Banking 4 ; September (2017). Juselius,Mikael; Borio, Claudio; Disyatat, Piti; Drehmann, Mathias


Category A Peer-reviewed scientific articles
Sub-category A1 Journal article (refereed), original research
auki Internal authors
All authors as text Juselius,Mikael; Borio, Claudio; Disyatat, Piti; Drehmann, Mathias 
Number of authors
Status Published
Year of publication 2017 
Date 15.09.2017 
Name of article Monetary Policy, the Financial Cycle, and Ultra-Low Interest Rates 
Name of journal International Journal of Central Banking
Volume of issue 13 
Number of issue 4 ; September 
Pages 55-89 
Abstract Do the prevailing unusually and persistently low real interest rates reflect a decline in the natural rate of interest as commonly thought? We argue that this is only part of the story. The critical role of financial factors in influencing mediumterm economic fluctuations must also be taken into account. Doing so for the United States yields estimates of the natural rate that are higher and, at least since 2000, decline by less. An illustrative counterfactual experiment suggests that a monetary policy rule that takes financial developments systematically into account during both good and bad times could help dampen the financial cycle, leading to significant output gains and little change in inflation.
Free text descriptor in Finnish rahapolitiikka; luotot; luonnollinen korkotaso; rahoitussyklit; suhdannejaksot; korot; suhdanteet 
JEL-codes E32, E40, E44, E50, E52 
ISSN / e-ISSN 1815-4654 
auki Internet addresses
Notes BoF DP 24/2016 
Open Access Open access -publication


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