TY - JOUR T1 - Measuring Equilibrium Real Interest Rates JF - The Journal of Fixed Income SP - 61 LP - 69 DO - 10.3905/jfi.2001.319306 VL - 11 IS - 3 AU - Antulio N. Bomfim Y1 - 2001/12/31 UR - https://pm-research.com/content/11/3/61.abstract N2 - What does the level of real interest rates tell us about where the economy, or our portfolio, is headed? The answer depends on one's estimate of the “equilibrium” value of real interest rates, a measure that is not directly observable in the marketplace. This article provides a brief overview of some approaches to defining and measuring equilibrium real rates, and introduces a novel method based on yields on the U.S. Treasury's inflation-indexed securities (TIIS). A simple framework for analyzing TIIS yields illustrates how to use them to gauge the stance of monetary policy and overall economic prospects. ER -