The Thomas Laubach Research Conference is held to honor the contributions of Thomas Laubach and his lasting impact on the economics and Central Banking communities.
The conference is attended by key policymakers and officials from the Federal Reserve and other distinguished guests, and it focuses on the natural rate of interest.
The conference aims to inspire attendees to continue Laubach's legacy, and the division of monetary Affairs also established the Thomas Laubach Research Award to promote research excellence in the Federal Reserve System. The speakers praise Laubach's work as an economist and acknowledge his extraordinary qualities and contributions, while providing insights into the modified model and estimations for R star in the United States, Canada, and the Euro area.
In this video, Thomas Laubach discusses the nature of the natural rate of interest, R-star, and its impact on the economy, as well as the difficulties in predicting it and the effect of various macroeconomic factors on it. Laubach explores the effects of changes in R-star and Pi-star on output and inflation in the short and long run, with a focus on the effects of natural rate shocks. He also discusses the historical trend of inflation in the US and how Bayesian estimation was used to analyze the fluctuations in inflation. Additionally, he examines the impact of a declining natural rate of innovation on economic output and productivity, finding that a decline in this rate leads to an immediate decline in economic output. Finally, he explores the challenges associated with estimating natural rate shocks and identifying their impacts.
Source: Federal Reserve, L