Basically, interest rates are low because demand for borrowing money is low, and there is no reason to think demand will improve any time soon. Read the full article.
This is the best time to borrow money. In all of history.
By Matt O'Brien, Wonkblog, WashingtonPost
This is the best time to borrow money in recorded history.
That’s right: Interest rates are lower today than they were when FDR or Napoleon or Henry VIII or Genghis Khan or Charlemagne or Julius Caesar or Alexander the Great or even Hammurabi were around. Or, if you want to put a year on it, lower than at any time since the ancient Sumerians made the first loans, payable in either silver or grain, back in 3000 B.C.
That, at least, is what Bank of England chief economist Andy Haldane found when he went digging through the historical record. Now, it is true that rates almost got all the way down to zero during the Great Depression, but they have gotten all the way down there today. Indeed, interest rates are all-but-zero in the United States, the United Kingdom, the euro zone and, for the past 16 years now, Japan…
Picture via Pixabay.
