Global Trends in Interest Rates

Brandyn Bok, Marco Del Negro, Domenico Giannone, Marc Giannoni, Eric Qian and Andrea Tambalotti

No 20190227, Liberty Street Economics from Federal Reserve Bank of New York

Abstract: Long-term government bond yields are at their lowest levels of the past 150 years in advanced economies. In this blog post, we argue that this low-interest-rate environment reflects secular global forces that have lowered real interest rates by about two percentage points over the past forty years. The magnitude of this decline has been nearly the same in all advanced economies, since their real interest rates have converged over this period. The key factors behind this development are an increase in demand for safety and liquidity among investors and a slowdown in global economic growth.

Keywords: VAR with common trends; world interest rate; convenience yields; interest rate parity (search for similar items in EconPapers)
JEL-codes: E2 (search for similar items in EconPapers)
Date: 2019-02-27
New Economics Papers: this item is included in nep-mac
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Citations: View citations in EconPapers (75)

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Related works:
Journal Article: Global trends in interest rates (2019)
Working Paper: Global Trends in Interest Rates (2019)
Chapter: Global Trends in Interest Rates (2018)
Working Paper: Global Trends in Interest Rates (2018)
Working Paper: Global trends in interest rates (2018)
Working Paper: Global Trends in Interest Rates (2018)
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