Understanding all the implications of the fact the return on capital has not fallen in 10 years in OECD countries

Since the 2008-2009 crisis in OECD countries, the return on capital has remained stable while risk-free interest rates and even interest rates on corporate bonds have fallen considerably. This means that despite the decline in interest rates, companies’ required return on capital has not fallen. As a result, the decline in interest rates in OECD countries: Has not stimulated investment; But has driven up corporate profitability thanks to the fall in their debt interest payments. This “taxation” of savers, which has driven down companies’ interest payments, has not boosted corporate investment .