Making a clear distinction between the two mechanisms that lead to very low real long-term interest rates

The world is characterised by increasingly low real long-term interest rates, but this is due to two different mechanisms: The rise in the global private savings rate is ex ante leading to excess total savings over investment, as it has only partially been absorbed by the rise in the fiscal deficit; The quantitative easing policy implemented by central banks has also changed the quantity of financial assets supplied: more money, fewer bonds. There is therefor e a savings-investment equilibrium mechanism combined with a mechanism for balancing the structure of portfolios and wealth.