The Bank of England’s chief economist Andy Haldane had a stimulating speech out overnight. I find almost everything Haldane writes is worth reading – he stimulates thought, and sends me off chasing down references, even if I often end up not quite convinced by a particular argument he makes.
This speech, titled simply “Stuck”, explores some of the reasons why interest rates, around the advanced world, have been so low for so long. Much of his story uses insights from psychology literature to try to explain behavioural responses across the advanced world in the years since the 2008/09 crisis. I don’t find the application of the psychology literature entirely compelling, partly because Haldane does not attempt to differentiate between countries that did, and did not, directly experience a financial crisis. For example, I would have expected different behavioural responses in places such as Ireland or the United States…
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Utopia, you are standing in it! 
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