Skip to main content

What do lower equilibrium interest rates mean for asset prices?

It is often argued that asset prices have been driven up by exceptionally loose monetary policy and that they are bound to come crashing down once central banks start to raise real interest rates back towards their historical levels. However, we are not convinced that this will happen because the equilibrium level of real interest rates is lower than in the past.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access