Bean, Charles ORCID: 0000-0002-6524-8280 (2016) Living with low for long. The Economic Journal, 126 (592). 507 - 522. ISSN 0013-0133
|
PDF
- Accepted Version
Download (726kB) | Preview |
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: | 05 Dec 2024 20:12 |
URI: | http://eprints.lse.ac.uk/id/eprint/65803 |
Actions (login required)
View Item |