4  The equilibrium real rate is typically viewed as the level of the short-term interest rate, less inflation, estimated to be consistent with maximum employment and stable inflation in the long run, assuming no future disturbances to the economy.
Accordingly, the equilibrium real rate is usually thought of as independent of the cyclical disturbances that routinely buffet the economy, on the assumption that the influences of such disturbances on real activity and inflation fade away after a few years.