Today’s ultra-low interest rates are anything but ‘natural’

 There is nothing natural about the fall in rates that we have seen in much of the developed world since the 1980s. The US, for one, has seen rate cuts with each crisis since the stock market crash of October 1987.

Lotta Moberg FT 20 August 2020

https://www.ft.com/content/c4e10d2c-109a-40f5-a175-628d1db9c793

Three years ago, Claudio Borio and his colleagues at the Bank for International Settlements published a paper suggesting that over the longer term, movement in interest rates are rather connected to changes in monetary regimes, such as a shift from the gold standard, or toward inflation-targeting.

Why So Low for So Long? A Long-Term View of Real Interest Rates

BIS Working Paper No. 685

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3090799