The real long-term interest rate has been very low for a number of years. The paper explores some explanations. Possible longer-term factors include: the investment of forex reserves; the regulation of the insurance and banking industry; and accounting and valuation rules for institutional investment and so on. At the same time, central banks in the advanced countries have made the long-term interest rate a policy variable as Keynes always advocated. This will focus more attention on the macroeconomic and financial consequences of government debt management policies. It raises big questions about the long-term rate as a guide to macroeconomic and microeconomic policies.
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Mr. Philip Turner, Deputy Head, Monetary and Economic Department; Director of Policy, Coordination and Administration, Bank for International Settlement
- Friday, 25 November 2011
- 12.15 p.m. - 1.30 p.m.
Seminar Room 3-4
Level 3, Manasseh Meyer
Lee Kuan Yew School of Public Policy
469C Bukit Timah Road