The New 'Normal' for Interest Rates in Canada: The Implications of Long-Term Shifts in Global Saving and Investment

Beaudry, Paul; Bergevin, Philippe

doi:10.2139/ssrn.2303835

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The New 'Normal' for Interest Rates in Canada: The Implications of Long-Term Shifts in Global Saving and Investment

C.D. Howe Institute E-brief 156

7 Pages Posted: 14 Aug 2013

See all articles by Paul Beaudry

Paul Beaudry

University of British Columbia (UBC) - Vancouver School of Economics; National Bureau of Economic Research (NBER)

Philippe Bergevin

C.D. Howe Institute

Date Written: May 29, 2013

Abstract

How far and how fast Canada’s record-low interest rates will rise in the coming years is a vital question for consumers and businesses. In "The New 'Normal' for Interest Rates in Canada: The Implications of Long-Term Shifts in Global Saving and Investment," authors Paul Beaudry and Philippe Bergevin find that the normal or "neutral" rate is likely lower than its historical average, and likely will remain at relatively lower levels over the next decade.

Keywords: Monetary Policy, Canada, Interest rates

JEL Classification: E43, E58

Suggested Citation: Suggested Citation

Beaudry, Paul and Bergevin, Philippe, The New 'Normal' for Interest Rates in Canada: The Implications of Long-Term Shifts in Global Saving and Investment (May 29, 2013). C.D. Howe Institute E-brief 156, Available at SSRN: https://ssrn.com/abstract=2303835 or http://dx.doi.org/10.2139/ssrn.2303835