683: Professor of Finance at Copenhagen Business School, Jesper Rangvid, on the End of 40 Years of Falling Interest Rates

683: Professor of Finance at Copenhagen Business School, Jesper Rangvid, on the End of 40 Years of Falling Interest Rates

Author: FirmsConsulting.com & StrategyTraining.com September 7, 2026 Duration: 50:35

Jesper Rangvid, professor of finance at Copenhagen Business School, explores what leaders should understand about interest rates, inflation, the cost of capital, prioritization, and AI.

Rangvid explains why the roughly 40-year decline in interest rates was "a completely unique historical period" and why executives should not assume borrowing will continue to get cheaper. Falling inflation and demographic changes helped drive rates lower, while low rates also contributed to rising house prices and increased borrowing. As he puts it, "lower and lower interest rates are not always good."

He discusses the post-pandemic shift toward higher inflation and interest rates, including the growing financing needs of governments and major AI companies. For executives, the key question is how changing financing costs affect investment and strategic decisions.

The conversation also explores prioritization and reflection. Rangvid describes scaling back his media commitments because "it simply takes too much time" and using running as "a time of reflection" to think through difficult problems from different angles.

Finally, Rangvid shares a cautiously optimistic perspective on AI and argues that technology does not eliminate the value of human judgment. Even when AI can produce an answer in seconds, "facilitating a discussion among executives is still unbelievably useful" because different perspectives help people challenge assumptions and think more deeply.

Get Jesper's new book, How Low Interest Rates Change the World, here: https://tinyurl.com/fbjzvwkz

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Tune into The Strategy Skills Podcast: Strategy | Leadership | Critical Thinking | Problem-Solving for conversations that move beyond abstract theory and into the practical mechanics of decision-making. Hosted by the teams behind FirmsConsulting.com & StrategyTraining.com, this series connects you directly to the minds shaping how organizations and individuals operate. Each episode features a diverse roster of guests, including sitting CEOs, senior partners from top consulting firms, acclaimed academics, and even high performers from sports and the arts, all dissecting pressing challenges in business and society. What you'll hear is a deep, unfiltered exchange of ideas on applying strategic frameworks, exercising genuine leadership, and honing the critical thinking required to solve complex problems. The dialogue is built for professionals aiming to advance their careers, managers seeking more effective tools, and anyone interested in the disciplined thought processes that drive success. This podcast serves as an audio companion for those who want to learn from real-world application, not just textbook cases. By focusing on the interplay between strategy, leadership, and problem-solving, it provides actionable insights you can use immediately in your own work and life.
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