Sunday, April 22, 2018

It's almost ten years since the interest rate went to zero

Graph #1

This is 2018. It's almost ten years since the interest rate went to zero. However, after a brief intermission, interest income resumed increase in 2010:

Graph #2

And after falling since 2007, the cost of interest is still almost 15 percent of GDP:

Graph #3

The cost of interest is still about two and a half trillion dollars a year:

Graph #4

You want it all, don't you. You want that interest income for yourself. Yeah, me too.

The thing is, though, it creates problems for the real (non-financial) economy.

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