Long-term low interest rates risk financial instability, Geneva report argues
Prolonged ‘loose monetary policy’ risks increasing leverage and risk
Persistently low interest rates may "increase the risk to financial stability" by increasing risk-taking and leverage, four distinguished economists argue in a report published today (October 23). The report is published jointly by the Centre for Economic Policy Research in London and the International Center for Monetary and Banking Studies in Geneva.
"Finding a way to loosen the constraint imposed by the zero lower bound is not the most important part" of the policy challenges facing central
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