11 Standard estimates of r* have declined between 2 and 3 percentage points over the past two decades. Some argue that the effective decline is even larger. 12 Incorporating a lower value of u* into policymaking  10  Powell (2018).
The fact that inflation did not react much to changing unemployment also led some to reassess other structural features such as the slope of the Phillips curve. 12 As discussed in Rachel and Summers (2019), many factors combine to determine the normal growth rate of the economy and r*.