Low interest rates: Anomalies that are difficult to understand

In OECD countries, low interest rates have led to: A considerable gap between real interest rates and real growth, while these two variables normally should be similar in the long term; A considerable gap between real interest rates and return on physical capital, while these two variables should also be similar in the long term . These gaps create very significant anomalies : investment s in the economy and in companies have a far higher larger return than investment in bonds. This should trigger a considerable flow of disinvestment in bonds and investment in real assets, which would rebalance interest rates, the growth rate and the return on equity. The fact that this correction is not (yet) taking place shows that: We are currently in a short-term and not a long-term regime; I n this short-term regime, the high aversion for economic risk and corporate risk explains the gap between the interest rate on the one hand and the growth rate or the return on physical capital on the other.