八卦爆料

鈥淏ut ultra-low interest rates may be doing more harm than good, economist William White says in a working paper published last month by the 八卦爆料. White, a former economic adviser at the Bank for International Settlements, has a number of arguments against this central bank policy. First, while lower borrowing costs do initially accomplish their goal of spurring spending, much of it is on 鈥渦nproductive purchases鈥� by both households and corporations that only wind up increasing the debt burden. Second, low interest rates can actually destabilize financial markets and the institutions surrounding them, either through inflated prices, encouraging fund managers to take on riskier investments, or hindering how banks and lenders are supposed to do business, White argues. And then there鈥檚 the exit problem. Once central banks lower interest rates, it鈥檚 very hard to tighten the flow of easy money. 鈥淓ach cycle of monetary easing contributes to a buildup of undesired side effects that raises the likelihood of future instability,鈥� White writes. 鈥淐entral banks are then lured into a 鈥榙ebt trap鈥� where they refrain from tightening, to avoid triggering the crisis that they wish to avoid, but that restraint only makes the underlying problems worse.鈥� — Diccon Hyatt, The Balance