Standard estimates of r* and u* made by policymakers and other analysts have been falling since 2012 (figure 2). Since the end of last year, incoming data—especially muted inflation data—prompted analysts inside and outside the Fed to again revise down their estimates of r* and u*.
In fact, no less than the United Nations gave an award to the Philippines for its institutional approach to microfinance, which makes it responsive to its e-poor clients and ensures its long-term sustainability. I hope this inspires you to join us in promoting microfinance to alleviate poverty in our country.