The 700 Year Fall in Interest Rates Explained

Have you ever heard anybody blame the Federal Reserve for all the problems saying, “hey, they kept interest rates too low for too long, causing the inflation and absent the intervention rates would be much higher”. I have been very guilty of saying this myself as well. But today we're going to take a look at a little bit of a contrarian view. By taking a look back at history for a much longer period of time, 700 years. We can see that interest rates have actually been falling for 700 years. This gives some evidence that interest rates may not be artificially low right now, or at least considering the long term trend of history. Maybe approaching zero at some point in the future and stay there permanently.