-5 time when real GDP growth is projected to exceed its longer-run pace and unemployment continues to fall. The shift from headwinds to tailwinds may be expected to push the shorter-run neutral rate above its longer-run trend in the next year or two, just as it fell below the longer-run equilibrium rate following the financial crisis.
The prosperity of savers in Germany in the future depends mainly on the success of reform efforts at the political level throughout the euro area. Because – as I said – if the interest rates for savers in Germany are in part so low, it’s because German government bonds are in demand.