In contrast to Keynes’s emphasis on the monetary nature of interest rates, the modern theory of central banking focuses on a benchmark rate for monetary policy that reflect “fundamental forces” supposedly unaffected by monetary factors. Its theoretical underpinning stems from Wicksell’s analysis of the relationship between market and natural interest rates as restated in the so-called New Keynesian theory which combines real-business-cycle general equilibrium models with imperfect competition and nominal rigidities

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