Real interest rates in the Euro area and the United States have been affected by the 2007 crisis and subsequent recession. If rates rise too much, it could harm private and public finances, housing markets, and stock markets. Different economic theories offer conflicting predictions about the future of interest rates. The current economic situation makes it hard to estimate normal interest rate levels. There is a risk of increased risk premiums and short-term interest rates, which could prolong the economic downturn.