Falling desired investment, including effects from cheaper capital goods, lower public investment and wider financing spreads, also contributed to lower global real rates.

Format Online paper / PDF

"Falling desired investment, including effects from cheaper capital goods, lower public investment and wider financing spreads, also contributed to lower global real rates."

This supports the manuscript's broader savings-versus-investment mechanism without reducing the whole decline in rates to population aging.

Source title Secular drivers of the global real interest rate

Source authors Lukasz Rachel and Thomas D Smith

Source year 2015

Confidence high

Importance mid