On Vox CEPR´s Policy Portal, ADEMU Advisory Committee member Charles Bean discusses how long low interest rates can last for.
Sir Charles Bean interviewed by Bob Denham, 23 October 2015
Interest rates have been historically low for decades – long before the financial crisis. What are the causes? And what are the consequences? In this Vox Talk Charlie Bean discusses the findings of the 17th Geneva Report. He argues that the main cause of low interest rates globally is higher savings by the middle aged and that this cause will subside as the middle aged start to retire. But that will take decades and in the meantime there are challenges and risks for monetary policy.