Since the “Great Recession” of 2007-09, the world’s major central banks have kept short-term interest rates at near-zero levels. In the United States, even after the Federal Reserve’s recent increases, short-term rates remain below 1%, and long-term interest rates on major government bonds are similarly low. Moreover, major central banks have supported markets at a record level by buying up huge amounts of debt and holding it.
- Why not the short-term interest rates?
- Why not the near-zero levels?
- Why not the long-term interest rates?
- Why not the major central banks?