Some of us of a certain age, who recall that long-term interest rates were in double-digits not so long ago, can’t help but assume that the current, lower-rate environment is something of an anomaly, and are waiting for a reversion to the mean to start any moment. According to the New York Times, we may be waiting for awhile. Viewed in the perspective of 200 years, today’s low long-term rates may not be as low as we think.
Chart of the Week: A Long-Term Perspective on Long-Term Rates
By Thomas K. Brown,
Some of us of a certain age, who recall that long-term interest rates were in double-digits not so long ago, can’t help but assume that the current, lower-rate environment is something of an anomaly, and are waiting for a reversion to the mean to start any moment. According to the New York Times, we may be waiting for awhile. Viewed in the perspective of 200 years, today’s low long-term rates may not be as low as we think.