>>Hilmar,
>>
>>Yes, interest rates are low right now. Here in the US, interest rates often move with the Fed rate. I did a google search, here's an article:
>>
>>http://www.chron.com/cs/CDA/story.hts/business/buggs/789208
>>
>>The Fed rate is low right now, and was cut several times last year by Greenspan...in an attempt to encourage the economy to grow.
>>
>>Of course there are factors besides the Fed rate that affect interest rates. Supply and demand.
>>
>>
>>>Interest rates for bank deposits and similar have gone down drastically in the last 2 years, approximately, here in Bolivia. I have heard that the same happens world-wide. 1) Is this true? 2) If yes, what might have caused this?
>>>
>>>Hilmar.
>
>Hmmm... Well, first of all, thanks for your reply. Now, this information seems to pose at least as many questions as it answers! For instance: If lowering the Fed rate tends to make the economy grow, would that make the interest rates go up again, in the long term? Did the lowering of the Fed rate affect - perhaps indirectly - most other countries, who are now "following suit"? What caused the economic slowdown in the first place? Is the tendency showing signs of reversal?
>
>Too many questions, some of them quite tricky, I know!
>
>Hilmar.
There are a few more factors:
- rational expectation of people and firms - if there are expactation for stability - Interest Rates(IR) are low.
- international trade aspects - in this case, when IR are low, people become to buy ather activity like shares or invest in other economies.
This may be is the chance of Bolivia and Bulgaria to attract with same stability, but with higher risk investments with bigger IR.

Expectation are for two years stability and low raisse of IR till 2006.
may be now is the time to borrow money and to invest them in business