Neiss, Katharine; Nelson, Edward - C.E.P.R. Discussion Papers - 2001
of the natural real interest rate and ‘real interest rate gap’ using a dynamic stochastic general equilibrium model … indicator and forecasting properties of the real interest rate gap for inflation, both in the model and in the data. Our results … suggest that the real interest rate gap has value as an inflation indicator, supporting the ‘neo-Wicksellian framework …