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Seven Centuries of Declining Interest Rates

A new working paper by Paul Schmelzing presents a fantastic dataset for interest rates, dating back to the 13th century, and shows that real rates have een dropping. The all-time real rate average has been 4.78%, but the average over the last tow centuries stands at 2.6%. Schmelzing shows the interest Arte has been dropping by an average 1.6 basis points (0,016%) per year. (source)

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