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Investors have flocked to the safety of government bonds, allowing sovereign borrowers to raise money cheaply.
Many countries in both regions can now raise money cheaply in capital markets.
These southern countries, some of them relatively new democracies, took advantage of the euro to borrow money cheaply.
Or is it meant to preserve the state's high bond ratings so that lawmakers can continue borrowing money cheaply?
Because they can raise money cheaply, there is profit to be made from buying and holding higher-yielding mortgages.
Companies have enjoyed high rates of return on capital spending because they have been able to borrow money cheaply.
Similar(6)
Corporations have rarely been able to borrow money more cheaply.
The government can borrow money remarkably cheaply at the moment.
As a result, they can raise money more cheaply than genuinely private financial institutions.
Plus, all the big banks get the privilege of borrowing money really cheaply from the Federal Reserve.
Consumers and businesses can expect to borrow money more cheaply because of the move.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com