Ernie Tedeschi, Visiting Fellow at the Georgetown Psaros Center for Financial Markets and Policy and former Chief Economist at the Council of Economic Advisers, The White House, wrote about R*, the natural rate of interest – the “most important unobservable economic concept at the moment.”
In this paper, Tedeschi explains the long and short-term run of R* and theorizes about the effects of the pandemic, the impact of fiscal and political risks, and why it is currently rising.
Read about the complexities of R* and its implications for the economy
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