The decline of “natural real interest rates” during the last three decades is a common phenomenon in all advanced economies and can be explained by a number of structural factors: the downward trend in potential growth; population ageing, which has led to higher savings rates in many countries; and the rising inequality in the distribution of wealth, which also increases the average savings rate.
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European Commission (2020), Communication on economic governance review, COM(2020) 55 final.
Francová, O., E. Hitaj, J. Goossen, R. Kraemer, A. Lenarčič and G. Palaiodimos (2021), EU fiscal rules: reform considerations, ESM Discussion Paper Series, 17.
Regling, K. (2020, 12 October), Fiscal rules: Drawing lessons from the past, Speech at the Interparliamentary Conference on Stability, Economic Coordination and Governance in the EU.
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Klaus Regling, European Stability Mechanism, Luxembourg, Luxembourg.
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