For a definition of the natural rate of interest in the context of dynamic economic models, see Woodford M., Interest and Prices: Foundations of a Theory of Monetary Policy, Princeton University Press, 2003. 3  See Laubach T. and J. Williams, “Measuring the Natural Rate of Interest Redux”, Federal Reserve Bank of San Francisco, Working Paper, No.
At least I understand that, in South Africa, too, some are calling for a more expansionary monetary policy in order to support socio-economic transformation. I am following all these developments with some concern. This year, the Bundesbank is celebrating its 60th anniversary.