Economic Perspectives article revisits the global saving glut hypothesis—which links low long-term real interest rates in the U.S. to excess saving in a number of non-Western countries. This article finds the hypothesis better accounts for the fall in long-term real rates in 2002–06 than the further fall in these rates from the Great Recession onward.

Ready to get Money Smart? Virtual Money Smart Week 2021 is taking place April 10-17. Each day will feature a “Money Smart” themed 15 minute presentation, supported by additional resources. Sign up today!