Exactly, persistent low rates lead to a mass of inefficient, capital destructive projects getting financed. Misallocation of capital on a grand scale.
It's one thing to make an argument to temporarily reduce rates for a period of months to "jump start" a lifeless economy. But it's another to find justification for holding real rates deeply negative for a decade.
Exactly, persistent low rates lead to a mass of inefficient, capital destructive projects getting financed. Misallocation of capital on a grand scale.
It's one thing to make an argument to temporarily reduce rates for a period of months to "jump start" a lifeless economy. But it's another to find justification for holding real rates deeply negative for a decade.
Very true Brant. I agree.