Low interest rates in the US and elsewhere are no longer part of the solution. They are part of the problem. The decline in interest rates has deep roots. It started with China and other developing nations exporting both savings and disinflation to the developed world, leading policymakers here into error. By freeing up the banking sector, we believed we had permanently reduced risk and the price of credit. By cementing central bank independence, we believed we had achieved unprecedented…
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