Customer Quote by Athanasios Orphanides
“The degree of monetary policy ease should be associated with the level of real interest rates, not nominal interest rates.”
About This Quote
Source Speech: Monetary Policy Lecture, 2005
Monetary easing should be guided by real rates, not nominal ones, to reflect true economic conditions.
In simple terms: Ease policy based on real rates.
Align policy with real interest rates.
Themes
Mood
Type
When to use this quote
- central bank decisions
- inflation targeting
- investment planning
- debt management
Key Concepts
Questions to Reflect On
- How do real rates affect borrowing costs?
- What challenges arise when nominal rates are low?
Real rates are harder to measure and may lag, complicating timely adjustments.