Global Trends in Interest Rates

42 Pages Posted: 17 Sep 2018 Last revised: 2 Jun 2023

See all articles by Marco Del Negro

Marco Del Negro

Federal Reserve Bank of New York

Domenico Giannone

International Monetary Fund (IMF); Centre for Economic Policy Research (CEPR)

Marc P. Giannoni

Barclays Corporate and Investment Bank; Center for Economic Policy Research (CEPR)

Andrea Tambalotti

Federal Reserve Bank of New York

Multiple version iconThere are 3 versions of this paper

Date Written: September 2018

Abstract

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.

Suggested Citation

Del Negro, Marco and Giannone, Domenico and Giannoni, Marc P. and Tambalotti, Andrea, Global Trends in Interest Rates (September 2018). NBER Working Paper No. w25039, Available at SSRN: https://ssrn.com/abstract=3250585

Marco Del Negro (Contact Author)

Federal Reserve Bank of New York ( email )

33 Liberty Street
New York, NY 10045
United States

Domenico Giannone

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Marc P. Giannoni

Barclays Corporate and Investment Bank ( email )

745 7th Avenue
New York, NY 10019
United States

Center for Economic Policy Research (CEPR)

90-98 Goswell Road
London, EC1V 7RR
United Kingdom

Andrea Tambalotti

Federal Reserve Bank of New York ( email )

33 Liberty Street
New York, NY 10045
United States

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