The Rate Corridor

Inflation floor versus the three ceilings. An equilibrium exists only if the floor sits below every ceiling.

Key Readings

At the policy rate you set

The Interest Channel

Steady-state federal interest bill once the debt reprices to policy rate plus spread, and the slice reaching the top 1%

A 1% Increase in Money Growth

How the corridor moves when money growth runs 1 point faster, at your settings