Must-Read: Mark Thoma sends us to: Jens H.E. Christensen and Glenn D. Rudebusch: New Evidence for a Lower New Normal in Interest Rates: “Inflation-indexed bond prices include a real term premium… face appreciable liquidity risk… http://www.frbsf.org/economic-research/publications/economic-letter/2017/june/financial-market-evidence-for-lower-natural-interest-rate-r-star/ …To estimate the equilibrium rate of interest from TIPS in the presence of liquidity and real term premiums, we … Continue reading Must-Read: Jens H.E. Christensen and Glenn D. Rudebusch: New Evidence for a Lower New Normal in Interest Rates