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How to raise r*?
How to raise r*?

SUERF • Baffi Bocconi • OeNB workshop

How to raise r*?

Date:      Wednesday, 15 September 2021
Time:      09:00-12:15 CET 
Platform: Cisco Webex 


There is consensus among the economics profession that r* - the equilibrium rate of interest at which inflation is stable - has strongly declined over past decades – more so in Europe than in the US. While r* in itself is not a policy goal, its currently estimated low level is widely perceived to pose several challenges, including eroding policy space for monetary policy, lower returns for savers and institutional investors as well as banks, and potential negative consequences for resource allocation and productivity. So, what can be done to exit from this “low r* trap”? This workshop explores the interaction of economic policies with r* and policy options to raise r*, against the backdrop of economic trends which may affect the further development of r* going forward.

Scientific Committee

Ernest Gnan (OeNB and SUERF), Robert Holzmann, Kilian Rieder and Maria Teresa Valderrama (OeNB).

Wednesday, 15 September 2021
09:00 Opening and Welcome

Raising r*: Why, how, and if not now, when?
Robert Holzmann, Governor, OeNB
pdf - speechpdf - speech

09:15 Macroeconomic policies and r*: Theory and empirics of endogeneity – policy implications

Moderated by Jakob de Haan, University of Groningen I SUERF President

Keynote Lecture: Navigating by r*: safe or hazardous?
Claudio Borio, BIS I SUERF Fellow

SUERF Policy Note, No 255 - Navigating by r*: safe or hazardous?

pdf - presentationpdf - presentation

Monetary policy and productivity
Maria T. Valderrama, OeNB
pdf - presentationpdf - presentation

Fiscal policies, monetary and fiscal policy interactions and r*
Isabel Vansteenkiste, ECB I SUERF
pdf - presentationpdf - presentation

r*, ELB, and monetary easing effect
Hiroshi Ugai, JPMorgan Securities Japan Co., Ltd.
pdf - presentationpdf - presentation

10:45 Long-term trends, structural policies and r*: Future scenarios and policy implications

Moderated by Ernest Gnan, OeNB I SUERF

Keynote Lecture: Just a temporary trough? Long-term scenarios for the future development of r*
Charles Goodhart, LSE I SUERF Fellow
pdf - presentationpdf - presentation

Impact of climate change/protection, digitalization and (de)globalization on r*
Cornelia Holthausen, ECB and Javier J. Pérez, Banco de España

Cornelia Holthausen, ECB (pdf - presentation)
Javier J. Pérez, Banco de España (pdf - presentation)

The circular relationship between productivity growth and real interest rates
Gilbert Cette, Banque de France, AMSE and NEOMA Business School
pdf - presentationpdf - presentation

How to raise productivity post-COVID?
Luiz de Mello, OECD
pdf - presentationpdf - presentation

12:15 End

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