Central Banks Are Asking the Right Questions

Central bankers believed they were fighting a problem which was too low inflation with te risk of deflation. So they used their standard tool box to fight that, and that is effectively low interest rits. But there's a side effect for low interest rit: It tends to create more debt because people like to borrow very cheaply. When the great financial crisis came along, they discovered that low interest wasn't enough. They then came up with the second part of the tool box - quantitative eas mass of expansion of the central bank balat sheet. But that has the same problem, it creates money orsy. It creates a particular type of money. It keeps interest retes too low, and debt