natural rate of interest การใช้

• The monetary equilibrium has implications for the rate of interest as there is a distinction between market rate of interest and natural rate of interest.
• When the natural rate of interest is lower than the money rate, the demand for credit dries up leading to a negative disequilibrium and capital destruction.
• Wicksell argued in Interest and Prices that the equilibrium of a credit economy could be ascertained by comparing the money rate of interest to the natural rate of interest.
• According to the idea of cumulative process, if the natural rate of interest was not equal to the market rate, demand for investment and quantity of savings would not be equal.
• If you accept the textbook theory that the natural rate of interest is 3 percent, which is the return investors would require in the absence of any inflation, the purchasing-power protection being demanded lately by long Treasury investors is remarkable.
• The market rate of interest is the rate that the banks are actually charging in the loanable funds market while natural rate of interest corresponds to the time preferences of savers and borrowers as expressed in demand-supply presentation for loanable funds ( r * in the figure ).