Some mainstream economists have been busy fanning the inflation hysteria that’s supposedly upon us now and a sign of things to come because of the sustained low interest rate environment. There’s a difference though between low interest rate like 1.5% and zero interest rate. Or even a negative interest rate policy (NIRP), which Sweden’s Riksbank experimented for a while off and on – as the first central bank to do so. Only Japan is lower at 0.4% (as of July), and this is despite decades of zero interest rate policy (ZIRP). The same mainstream economists are also now shifting their argument towards asset bubbles caused by a low interest rate environment.

Source: The Star September 03, 2021 09:33 UTC