On the other hand, when the second oil crisis occurred, the economy was not overheated, the financial environment was not overly accommodative, and monetary tightening was initiated in a timely manner.
The natural rate of interest would have a clear interpretation in a solid dynamic general equilibrium model. Nevertheless, the determinants of the natural rate of interest vary, depending on how the model is specified. It is well known that, in some specific cases, the natural rate of interest coincides with the potential growth rate of the economy, but this is not always the case.