Why are interest rates not having an impact on growth or investment in OECD countries?

It is clear that in OECD countries, the sharp fall in interest rates clearly has not: Boosted corporate investment; Stimulated housing investment; Driven down the household savings rate; Prevented potential growth from falling. A likely explanation for this ineffectiveness of the fall in interest rates is that this fall: Has not driven down companies’ required return on capital ; Has not driven governments to invest more; Has not boosted housing demand because it has pushed up real estate prices; At least in some countries, has driven up the household savings rate through an income effect. The fact that the return on capital (equity) has not fallen while risk-free interest rates have fallen considerably is a major problem for monetary policy in particular . Expansionary monetary policies are therefore ineffective since they do not lead to additional investment, consumption or long-term growth.