01864cas a2200253 a 4500 AALejournalIMF019271 230101c9999 xx r poo 0 0eng d 5.00 USD 9781498311410 1018-5941 BD-DhAAL BD-DhAAL Natal, Jean-Marc. Globalization, Market Power, and the Natural Interest Rate / Jean-Marc Natal, Nicolas Stoffels. Washington, D.C. : International Monetary Fund, 2019. 1 online resource (25 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students We argue that strong globalization forces have been an important determinant of global real interest rates over the last five decades, as they have been key drivers of changes in the natural real interest rate-i.e. the interest rate consistent with output at its potential and constant inflation. An important implication of our analysis is that increased competition in goods and labor market since the 1970s can help explain both the large increase in real interest rates up to the mid-1980s and-as globalization forces mature and may even go into reverse, leading to incrementally rising market power-its subsequent and protracted decline accompanied by lower inflation. The analysis has important implications for monetary policy and the optimal pace of normalization. Mode of access: Internet Stoffels, Nicolas. IMF Working Papers; Working Paper ; No. 2019/095 Full text available on IMF http://elibrary.imf.org/view/journals/001/2019/095/001.2019.issue-095-en.xml IMF e-Library