Bernanke: Long-Term Interest Rates
From federalreserve.gov
I will begin my remarks by posing a question: Why are long-term interest rates so low in the United States and in other major industrial countries? At first blush, the answer seems obvious: Central banks in those countries are pursuing accommodative monetary policies to boost growth and reduce slack in their economies. However, while central banks certainly play a key role in determining the behavior of long-term interest rates, theirs is only a proximate influence. A more complete explanation of the current low level of rates must take account of the broader economic environment in which central banks are currently ...
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