Bean, Charles 
ORCID: 0000-0002-6524-8280
(2016)
Living with low for long.
The Economic Journal, 126 (592).
507 - 522.
ISSN 0013-0133
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Abstract
I review the causes and some of the consequences of the recent decline in global real interest rates. Causes include: a higher propensity to save associated with a rise in the population share of the high-saving middle-aged; a weaker propensity to invest since the 2007-8 financial crisis; and portfolio shifts towards safer assets. Consequences include: an increased likelihood that policy rates are constrained by the zero lower bound, necessitating greater reliance on unconventional monetary policies; and an increased risk of financial instability as investors seek to generate higher yields.
| Item Type: | Article |
|---|---|
| Official URL: | https://academic.oup.com/ej |
| Additional Information: | © 2016 Royal Economic Society |
| Divisions: | Economics |
| Subjects: | H Social Sciences > HC Economic History and Conditions H Social Sciences > HG Finance |
| Date Deposited: | 21 Mar 2016 12:01 |
| Last Modified: | 12 Dec 2024 01:09 |
| URI: | http://eprints.lse.ac.uk/id/eprint/65803 |
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