= Wicksellian Differential
{wiki=Wicksellian_Differential}
The Wicksellian differential refers to the difference between the natural rate of interest and the actual market interest rate. It is named after the Swedish economist Knut Wicksell, who discussed the concept in the context of his monetary theory in the early 20th century. According to Wicksell, the natural rate of interest is the rate that would equilibrate savings and investment in an economy, without causing inflation or deflation.
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