02051cas a2200277 a 4500 AALejournalIMF021055 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513549170 1018-5941 BD-DhAAL BD-DhAAL Arena, Marco. It is Only Natural : Europe's Low Interest Rates / Marco Arena, Gabriel Di Bella, Alfredo Cuevas, Borja Gracia. Washington, D.C. : International Monetary Fund, 2020. 1 online resource (59 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 Estimates of the natural interest rate are often useful in the analysis of monetary and other macroeconomic policies. The topic gathered much attention following the great financial crisis and the Euro Area debt crisis due to the uncertainty regarding the timing of monetary policy normalization and the future path of interest rates. Using a sample of European countries (including several members of the Euro Area), this paper provides estimates of country-specific natural interest rates and some of their drivers between 2000 and 2019. In line with the literature, our findings suggest that natural interest rates declined during this period, and despite a rebound in the last few years of it, they have not recovered to their pre-crisis levels. The paper also discusses the implications of the decline in natural interest rates for monetary conditions and debt sustainability. Mode of access: Internet Cuevas, Alfredo. Di Bella, Gabriel. Gracia, Borja. IMF Working Papers; Working Paper ; No. 2020/116 Full text available on IMF http://elibrary.imf.org/view/journals/001/2020/116/001.2020.issue-116-en.xml IMF e-Library