Policy Stance: Real Rates, the Neutral Rate and Tight vs Loose with IFS
This lesson is part of the course
In this lesson
You turn eight fictional policy rates into real rates, compare them with estimated neutral rates, classify each stance as tight, neutral or loose with IFS, count the tight ones and compute a GDP-weighted regional real rate.
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Lessons in this course
- Counting Money: Currency, Deposits and the Aggregates M1 to M3 Locked
- Deposit Creation: Rounds, Leaks and the Money Multiplier Locked
- The Quantity Equation: MV = PY, Velocity and Implied Inflation Locked
- A Rule-Based Policy Rate: Inflation Gap, Output Gap and the Deviation Locked
- Policy Stance: Real Rates, the Neutral Rate and Tight vs Loose with IFS Locked
- The Central Bank Balance Sheet: Asset Purchases, Reserves and Bank Liquidity Locked
- Seigniorage and the Inflation Tax in a Simple Steady State Locked
- Inflation-Target Scorecard: 12-Month Inflation, the Band and the Chart Locked