Felipe Schwartzman explains how he and other economists define the natural rate of interest, what factors have influenced this theoretical estimate of where long-term interest rates will settle, and what it tells us about how the cost of savings and borrowing will respond as monetary policy normalizes after the COVID-19 pandemic.
Full transcript and related links: https://www.richmondfed.org/podcasts/speaking_of_the_economy/2024/speaking_2024_12_04_interest_rate_normalization
