Interest rates are far lower than the growth rate: We should not forget that this is a tax

Interest rates are now markedly lower than the growth rate in all OECD countries. We should not forget that this represents a tax on bondholders and banks. As any taxation, it is positive if those who receive the proceeds of the tax (in this case government, corporate and household borrowers) use the proceeds in a way whose efficiency exceeds the cost of the tax. If the proceeds of the tax are used to finance: Current fiscal deficits; An accumulation of cash reserves by companies; A rise in real estate prices, then the risk is that the cost of the tax for those who are taxed may outweigh the positive effects of the incomes distributed thanks to the tax.