tag:blogger.com,1999:blog-6948982521501107752.post3150252281513163449..comments2023-10-21T09:03:15.270-04:00Comments on Rogue Economist Rants: Natural rate brain twistersRogue Economisthttp://www.blogger.com/profile/03439817966760459091noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-6948982521501107752.post-16317984480241591022012-04-20T20:26:52.125-04:002012-04-20T20:26:52.125-04:00Mike, Krugman today adds Wicksell's definition...Mike, <a href="http://krugman.blogs.nytimes.com/2012/04/20/plutocrats-and-printing-presses/" rel="nofollow">Krugman</a> today adds Wicksell's definition, which might add even more layers of issues to your natural rate project - "Roughly, the natural rate of interest is the rate that would lead to stable inflation at more or less full employment."<br /><br />Does this mean the natural rate can only calculated at full employment?<br />And what does it mean to have stable inflation at full employment? To have an economy that doesn't grow anymore? No more business cycles? No more new business creation or destruction?<br /><br />With the natural rate, any definition just brings forth more questions.Rogue Economisthttps://www.blogger.com/profile/03439817966760459091noreply@blogger.comtag:blogger.com,1999:blog-6948982521501107752.post-24962148863728883622012-04-20T14:46:32.535-04:002012-04-20T14:46:32.535-04:00I have to add this critique in there. I think it w...I have to add this critique in there. I think it would be shoved between 2 and 3, because this isn't exactly the same as what I was saying. <br /><br />I was saying there wasn't one rate. I think you are saying, if there is one rate, then it causes huge distortions because everyone has their own personal natural rate and well, that means some people are foolishly investing and others are foolishly not investing. <br /><br />ha! :) I'll do an update!Anonymoushttps://www.blogger.com/profile/05819776376553445235noreply@blogger.com