- Markus Demary / Michael Voigtländer ·
- IW-Report No. 47 ·
- 13 December 2018
Reasons for the Declining Real Interest Rates
The low nominal interest rate environment is a hotly debated phenomenon among politicians, financial market participants and households. Savers fear the erosion of their retirement savings, while financial supervisors warn of the stability risks caused by declining bank profitability and by the declining profitability of life insurers. Moreover, financial supervisors fear an increase in household debt triggered by a high demand for cheap loans.