On interwar several months 1918-1940, actual rates was basically rather large, either really more than 5 %
This is partly because of the policy away from gold parity and the fresh reestablishment of gold standard, and that resulted in higher moderate rates in certain countries.
Brand new post-2nd World Battle time should be split up into several periods. The latest post-combat months to new collapse of Bretton Trees agreement from inside the 1971 was characterised because of the strangely reduced genuine rates, between 0 to dos %. Genuine interest rates were low despite large returns on the stock business, strong growth in output plus carries out-of genuine investment. According to really monetary progress theories, this will had been followed closely by a high actual interest. Regarding a far more short-identity direction, not, reasonable actual interest rates resulted in high financing passion and you can growth. But not, so it probably lead to the latest stress you to led to the new noted changes in financial rules throughout the 70s and eighties, all over the world as well as in Norway. Read More
