Near-zero long-term interest rates should lead the future to count as much as the present in OECD countries
The fact that long-term interest rates are near zero in OECD countries should lead the future to count as much as the present in economic agents’ decision - making. Are there signs that this the case? For example, we ought to see: An increase in investment in new technologies; An increase in spending on R&D and education; An increase in corporate investment; A sharp rise in equity valuation. However, nothing of the sort can be seen: OECD economies have not reacted to the fact that future incomes are discounted at a near-zero interest rate.