Perspectives on low global interest rates

This IMF Working Paper, published March 2006, looks at the dramatic decline in global real interest rates in recent years from a historical perspective and examines the various factors that may account for this trend.

The authors show that current levels of real interest rates on long-term bonds in advanced economies are not low by historical standards and that it is the real long bond rates of the early 1980s through much of the 1990s that look anomalous. They also find that current global long

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