Why are interest rates so low?
About the author:
- Author name:
- By Michael Knox
- Job title:
- Chief Economist and Director of Strategy
- Date posted:
- 13 August 2015, 12:23 PM
Data tells us that we are living through the second great age of financial
repression.
The high level of public debt in developed economies and the
reduction in income from servicing the interest rates on that public debt is
reducing demand.
Central Banks are responding to that fall in demand by giving
us very low levels of interest rates. We are facing an extended period of low real interest rates in the developed
world.
These low real interest rates will help to repay public debt. However, this
process will take many years.
The result will be an extended multi year period of
low interest rates.
Why is this happening?
View my full article on this topic, in which I take a look at previous periods of financial repression and why they occur.
More information
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