The temptation will now be to keep real long-term interest rates persistently lower than real growth: Will this even be possible?

The euro zone, the United States and Japan now have a strong incentive to keep real long-term interest rates low - significantly lower than real growth - with two objectives in particular: To boost investment, which risks being sluggish, as well as potential growth, after the COVID crisis; Deleveraging. But is it conceivable for an economy ’s real long-term interest rate s to be permanently and significantly lower than its real growth? This would certainly give rise to huge asset price bubbles, forcing central banks to abandon such a policy.