Its modern usage in fact dates back to the Swedish economist Knut Wicksell, who in 1898 defined it as the interest rate that is compatible with a stable price level – a still valid definition. 3/4  BIS central bankers' speeches  Why is a low natural rate of interest a problem?
BIS Review 44/2005  1  The housing market in the United States is quite heterogeneous, and it does not have the capacity to move excesses easily from one area to another. Instead, we have a collection of only loosely connected local markets.