Inefficient changes in the structure of wealth (savings)

When interest rates are low for a long period, savers are driven to diversify their savings into asset classes that provide higher returns. But such a diversification of savings and wealth structure can be highly inefficient if it leads to investments in speculative assets that do not generate any additional growth. These include, for example: Purchases of shares that are not associated with share issues and that simply lead to a rise in stock market indices (prices of existing shares); Purchases of real estate that do not lead to additional construction and that only lead to a rise in prices of (old, existing) real estate; Cryptocurrency purchases. This speculative and unproductive diversification of savings will curb long-term growth.