Beyond the obvious: debt is becoming more expensive

Why has long-term money become more expensive? How long can the growing interest bill be cushioned by old low-interest contracts? And can falling real interest rates relieve pressure on states? It's not as unlikely as that sounds.

According to analyzes by economic historian Paul Schmelzing, earlier phases of interest rate increases after longer phases of real falling interest rates only lasted around ten years. If this pattern repeats itself, we will already have peaked interest rates behind us. This is good news for states, but bad news for creditors and savers.