Equilibrium Real Interest Rates The staff presented several briefings regarding the concept of an equilibrium real interest rate--sometimes labeled the "neutral" or "natural" real interest rate, or "r*"--that can serve as a benchmark to help gauge the stance of monetary policy. Various concepts of r* were discussed. According to one definition, short-run r* is the level of the real short-term interest rate that, if obtained currently, would result in the economy operating at full employment or, in some simple models of the economy, at full employment and price stability. The staff summarized the behavior of ... (full story)