What do very low interest rates do to asset prices?

If interest rates are permanently lower than growth rates and if there were no risk premium, then asset prices (financial, real estate) would rise without limit. If central banks kept interest rates permanently very low, then we w ould expect to see: Either growing asset price bubbles; Or an increase in risk premia that reconciles reasonable asset prices with the interest rate-growth differential, and which results from high asset price variability . Central banks’ current policy therefore inevitably leads either to bubbles or to excessive asset price variability (which can also result from the bursting of the bubbles).