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Why the Neutral Interest Rate Is a Debate
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"R-star": that's the name of the theoretical rate marks the boundary between an expansionist monetary policy and a restrictive policy. As President Trump pushes for a sharp fall in US rates, one of his advisers supports this thesis by believing that the neutral rate is close to zero in the United StatesThere is a lot of talk about the "neutral" or "equilibrium" interest rate currently in the United States. This rate means that an economy is neit…
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