New Delhi, Oct. 4 -- The era of easy money is coming to an end, French economist Jean-Pierre Landau has said, cautioning that the world is moving towards elevated real interest rates, driven by falling global savings, heavy investment in technology, and a large buildup in public debt.

The favourable conditions that led to low rates are now fading, indicating higher borrowing costs for governments and companies, Landau, former deputy governor of the Banque de France, told Mint in an interview on the sidelines of the 5th Kautilya Economic Conclave in New Delhi.

"We had almost three decades of very low interest rates. Long-term real rates were not a monetary factor, they were a real factor. We are coming now, maybe, to a period where this ...