Ultimately, changes in interest rates are influenced by several factors, and it is difficult to determine the exact neutral rate in real-time. Demographics, government debt, corporate expansion plans, and inequality all play a role in determining interest rates.
While some economists believe that rates may have temporarily increased due to the pandemic, others are skeptical about a long-term shift. There are arguments for both temporary and permanent increases in rates, including factors such as government debt levels and investments in green energy and new technologies.
