A recent report has highlighted the argument for maintaining high interest rates indefinitely. The report, titled 'GLOBAL-RATES-RSTAR-GRAPHIC,' presents a compelling case for this approach in the current economic climate.
One of the key points made in the report is the concept of the natural rate of interest, often referred to as r-star. This rate is seen as the equilibrium level of interest rates that neither stimulates nor restricts economic growth. The report suggests that setting interest rates above this natural rate could help prevent overheating in the economy.
