In principle, the rate decline has to have one of two explanations: too much supply of money from savers or too little demand for money from investors. (Or, of course, some of each.) In 2005, Ben Bernanke, then chairman of the U.S. Federal Reserve, focused on the supply side when he attributed falling rates to a “savings glut.” But there’s increasing evidence that the bigger culprit is too little demand. That is, a dearth of investment. 

Source link

By admin

Leave a Reply

Your email address will not be published. Required fields are marked *