Global Trends in Interest Rates – FEDERAL RESERVE BANK of NEW YORK

JEL classification:

E43, E44, F31, G12

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.