A core issue identified by the authors is whether “Secular Stagnation,” where economic weakness and the inability of low interest rates to boost economic growth is the result of a fundamental change
Pension Funds and Retirement Savers Face a Future of Lower Investment Returns
Pension funds and retirement savers face a future of lower investment returns, states a new report from the C.D. Howe Institute. In “One Percent? For Real? Insights from Modern Growth Theory about Future Investment Returns,” authors Steve Ambler and Craig Alexander project a 1 percent rate of real return for risk free investments like Treasury bills, forming an anchor for the returns on other financial assets, including bonds and equities.
