Three questions that require clear answers

An understanding of economic trends in OECD countries requires clear answers to three questions: Why are long-term interest rates low? Because of excess savings over investment, excess demand for risk-free bonds or expansionary monetary policies? The answer to this question is key to determining whether interest rates will remain low and how fiscal policies will react. Why is there no inflation at full employment? What structural features of the labour or goods market have caused this ? Will they persist? Why has the return on capital not fallen when the risk-free interest rate has fallen sharply? This question is key to assessing the effectiveness of the expansionary monetary policies.