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The decline in real interest rates over the past several decades has recently been the subject of intense policy debate (e.g. Bean et al. 2015). Real interest rates in several countries have become negative. While some hold monetary policy to be responsible, others claim that monetary policy is merely the response to low demand in the aftermath of the Great Recession. In fact, the decline in interest rates is a trend that starts around 1980, dating back to well before the onset of the Global Crisis.
