Gavyn Davies: Who Is Right About the Equilibrium Interest Rate?: “Bernanke believes that the equilibrium real rate is currently abnormally low, but that it will rise gradually in the next few years as economic ‘headwinds’ abate… …This justifies a large part of the rate increase shown in the dots chart, a view also explicitly stated … Continue reading Today’s Must-Must Read: Gavyn Davies: Who Is Right About the Equilibrium Interest Rate?