Skip to main content

The forecasting power of real interest rate gaps: an assessment for the Euro area

Buy Article:

$47.00 plus tax (Refund Policy)

The real Interest Rate Gap (IRG)-the gap between the short-term real interest rate and its 'natural' level-is a theoretical concept that has attracted much attention in central banks in recent years. This article aims at clarifying its practical relevance for monetary policy in real time. For this purpose, it provides an empirical assessment of the usefulness of a semi-structural versus purely statistical estimates of the real IRG for predicting policy relevant macroeconomic variables in the Euro area. However mixed, the results confirm that semi-structural estimates of the real IRG deserve being added to the central banks' toolbox.
No Reference information available - sign in for access.
No Citation information available - sign in for access.
No Supplementary Data.
No Article Media
No Metrics

Document Type: Research Article

Affiliations: Research Directorate, Banque de France, Monetary Policy Research Division, 41-1422 Pomone, Paris Cedex 01, France

Publication date: 2011-01-01

More about this publication?
  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
X
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more