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Or maybe there is no natural rate above zero.
They call that level the natural rate of unemployment.
The natural rate of population increase is very small.
Unemployment rose above its natural rate to a peak of 7.6percentt in June 1992.
Economists began spinning theories of what had caused the natural rate to fall.
Unemployment has been very low and is now near what economists call a "natural" rate.
And inflation would keep rising further until unemployment climbed back to or above its natural rate.
At that stage, the interest rate gap reverses and the market rate exceeds the natural rate.
Threadneedle Street has picked 7% as the "natural rate" of unemployment.
The natural rate is essentially the interest rate that would prevail in general equilibrium, and a market rate different from the natural rate is a disequilibrium interest rate.
I mean, what is the un-artificial, or if you prefer, "natural" rate of interest?
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