BoE paper studies interest rates across eight centuries
In July 2016, global risk-free rate hit lowest level since at least 1273
A new Bank of England working paper traces global risk-free rates back as far as thirteenth century Venice, finding current rates are at their lowest level for eight centuries.
Paul Schmelzing finds that global debt markets became sophisticated enough for a risk-free rate to be recorded in Venice from around 1273, with real rates available from 1311. From there, he stitches together datasets from the banking systems of Venice, Genoa, Spain, Amsterdam, the UK, Germany and finally the US to build
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