Neiss, Katharine S.; Nelson, Edward - Society for Computational Economics - SCE - 2001
between the actual real interest rate and its flexible-price, or natural-rate, counterpart. We examine the properties of the … natural real interest rate and real interest rate gap using a dynamic stochastic general equilibrium model. Issues we … forecasting properties of the real interest rate gap for inflation, both in the model and in the data. Our results suggest that …