Federal Reserve Bank of New York
Global trends in interest rates
The trend in the world real interest rate for safe and liquid assets fluctuated close to 2 percent for more than a century, but has dropped significantly over the past three decades. This decline has been common among advanced economies, as trends in real interest rates across countries have converged over this period. It was driven by an increase in the convenience yield for safety and liquidity and by lower global economic growth.
Cite this item
Marco Del Negro & Domenico Giannone & Marc Giannoni & Andrea Tambalotti, Global trends in interest rates, Federal Reserve Bank of New York, Staff Reports 866, 01 Sep 2018.
- E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
- E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
- F31 - International Economics - - International Finance - - - Foreign Exchange
- G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
Keywords: world interest rate; convenience yield; interest rate parity; VAR with common trends
This item with handle RePEc:fip:fednsr:866
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