Constant-Interest-Rate Projections and Its Indicator Properties

Borradores de Economia
Number: 
696
Published: 
Classification JEL: 
E37, E47, E52
Keywords: 
Human capital agglomeration, Social returns, Private returns, Externalities, Uncertainty, Fiscal policy

This paper propose indicator variables for the implementation of monetary policy in an inflation targeting regime. Using constant interest rate projections, the notion of a target-compatible interest rate is presented. This variable allows to extract some