Finally, one potential explanation that I have only briefly discussed above is that yields are being held down by a shortage of risk-free assets as demand for these assets has increased.1 I find this explanation of increased demand for such assets in the face of slower growth in the supply to be the most plausible.
This is based on our latest experience, when we were treated as an outsider in the second wave of the EU, OECD and NATO enlargement, with a long lasting effect on FDI inflows, costs of debt service and the overall macroeconomic development.