We should not forget that when real interest rates are lower than real growth, there is a tax on savers

It is often proposed that European countries should switch to a "war economy" against climate change, and that the very substantial investment spending needed in this war economy should be offset by real long-term interest rates that are lower than real long-term growth. Actually, if real long-term interest rates are lower than real long-term growth, it is possible to conduct a highly expansionary fiscal policy without driving up the public debt ratio; it is also possible for companies to invest more. But it should be remembered that if real long-term interest rates are lower than real growth, there is a tax on all bond savers and long-term lenders, a tax that benefits the State (on public debt) and companies (on long-term corporate debt). This policy of setting real interest rates lower than real growth has the advantage of preventing a public debt or corporate debt crisis, but has the disadvantage of taxing savers who invest in bonds and credit.