27 - Claudio Borio on Financial Stability, the Triffin Dilemma, and International Monetary Policy
Macro Musings with David Beckworth
00:00
A Srocly Meask You Say Major.
There are reasons to believe that there might be diminishing returns because of the intrinsic nature of these policies. Low rates tend to em and very flat term structure tend to undermine bank profitability, which can turn and reduce the incentives and ability to lend. And then they are also broader questions about confidence, aminit. I theyre some perverse esfects here, because times, in order to convince markets that you will keep interest rates forfor long, for example, you have to paint a rather bleak picture of the mac economic outlook.
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