9  Chart 10  Determinants of the Natural Rate of Interest Real interest rate  Demand curve  Supply curve  Decrease in capital supply Aging population: withdrawing savings by retired households Financial crisis  Increase in capital supply Aging population: precautionary savings caused by increased longevity Improved functioning of financial intermediation Increase in precautionary savings due to heightened uncertainty  Natural rate of interest  Increase in capital demand Decrease in capital demand Slowdown in business dynamism Depopulation: less labor input and excess capital stock  Creating new investment opportunities such as innovation and GX Increase in fiscal deficit  Savings and investment  10  Chart 11  Looking Ahead: Lessons from History  Jordà et al.
(2019):  rsafe < g < rwealth rsafe  : Real rate of return on safe assets  g  : Real economic growth rate  rwealth : Real rate of return on aggregate wealth  Source: Jordà, Ò., Knoll, K., Kuvshinov, D., Schularick, M., and Taylor, A. M., "The Rate of Return on Everything, 1870-2015," The Quarterly Journal of Economics, 134 (3), pp.