The explanation of the ECB’s problems: The very low sensitivity of savings and investment to real interest rates in the euro zone

Real interest rates have fallen considerably since 2009 in the euro zone. Yet, the euro zone has developed a situation of excess savings, which shows the very low sensitivity of savings and investment to real interest rates in the zone. This low sensitivity is due in particular to Germany's very strong reference for savings, the halt to capital mobility within the euro zone, and the correction of the real estate bubble. If real interest rates have no effect one savings or on investment, we understand why the ECB's monetary policy has such little impact on the euro zone’s economic equilibrium.