For years, interest rates in Europe and other advanced economies kept falling, puzzling savers and investors alike. Then, after 2022, rates surged at the fastest pace in decades. This report by the Bocconi Students Asset Management Club tackles a key question behind these movements: is there really a fixed “normal” level for interest rates, or does that benchmark itself change over time? The central idea of the report is that the so-called neutral or equilibrium interest ra