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sd-10-EFTA01459048Dept. of Justice

EFTA Document EFTA01459048

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The terminal rate will be lower than in the past but very likely higher than current market expectations The neutral rate has fallen since the crisis - but the rate implied by market pricing is consistent with a very pessimistic scenario Neutral rate estimates 3-3.25% 2.00% Market pricing DB Neutral rate estimates are consistent with: Potential growth Productive -ty growth Source: C60. Laubach and Williams (2004 POMO. Deutsche Bank Research Fed Pre-crisis* 0.6% 0% 1.75-2% 1.2

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Dept. of Justice
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sd-10-EFTA01459048
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