A key and central conclusion of our work is that the Great Reversal of demography and globalisation will lead to more inflation. When this takes hold, though it may be a few years from now, and expectations adjust, then nominal interest rates will rise. Of that, we are confident. But the more difficult and interesting question is whether nominal interest rates will rise by more than inflation, i.e. whether real interest rates will rise, or whether the reverse will happen and real interest rates will fall.
