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The New "Normal" for Interest Rates in Canada: The Implications of Long-Term Shifts in Global Saving and Investment

Author

Listed:
  • Paul Beaudry

    (University of British Columbia)

  • Philippe Bergevin

    (C.D. Howe Institute)

Abstract

How far and how fast Canada’s record-low interest rates will rise in the coming years is a vital question for consumers and businesses. In “The New “Normal” for Interest Rates in Canada: The Implications of Long-Term Shifts in Global Saving and Investment,” authors Paul Beaudry and Philippe Bergevin find that the normal or “neutral” rate is likely lower than its historical average, and likely will remain at relatively lower levels over the next decade.

Suggested Citation

  • Paul Beaudry & Philippe Bergevin, 2013. "The New "Normal" for Interest Rates in Canada: The Implications of Long-Term Shifts in Global Saving and Investment," e-briefs 156, C.D. Howe Institute.
    • Handle: RePEc:cdh:ebrief:156
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    File URL: https://www.cdhowe.org/public-policy-research/new-normal-interest-rates-canada-implications-long-term-shifts-global-saving-and-investment
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    References listed on IDEAS

    as
    1. David Laidler, 2011. "Natural Hazards: Some Pitfalls on the Path to a Neutral Interest Rate," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 140, July.
    2. Brigitte Desroches & Michael Francis, 2006. "Global Savings, Investment, and World Real Interest Rates," Bank of Canada Review, Bank of Canada, vol. 2006(Winter), pages 3-17.
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    Cited by:

    1. Richard Guay & Laurence Allaire, 2013. "Long-Term Returns: a Reality Check for Pension Funds and Retirement Savers," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 395, December.
    2. Jean-Francois Wen, "undated". "Capital Budgeting and Fiscal Sustainability in British Columbia," Working Papers 2014-41, Department of Economics, University of Calgary, revised 29 Sep 2014.

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    More about this item

    Keywords

    Monetary Policy;

    JEL classification:

    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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