Low for Long? Causes and Consequences of Persistently Low Interest Rates: The 17th Geneva Report on the World Economy (Paperback)Charles Bean (author), Christian Broda (author), Randall Kroszner (author), Takatoshi Ito (author)
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The pace at which that reversal will happen remains highly uncertain, however, and dependent on longer-term policy choices. The return to historically more normal levels of interest rates may, consequently, be quite drawn out and policymakers need to be alert to the consequences. Aside from increasing the frequency with which monetary policies are constrained by the lower bound on policy rates, persistently low interest rates on safe assets also encourage the adoption of strategies to lever up returns, so heightening the risks to financial stability. While macro prudential policies represent the first line of defense against such risks, policymakers should be careful not to expect too much from them.
Publisher: Centre for Economic Policy Research
Number of pages: 122
Weight: 241 g
Dimensions: 229 x 152 x 10 mm
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