Cheap money: boon or postponement
The article discusses the role of low interest rates and their impact on the global economy after the 2008 crisis and the COVID-19 pandemic. These policies led to the flow of cheap money, rising prices of financial and real estate assets, debt accumulation, and the postponement of structural reforms. The book explains that cheap money can hinder efforts to address productivity and innovation issues, and that monetary policies should be flexible and balanced with reforms that promote productivity and sustainable development. Meanwhile, excessive reliance on asset inflation remains vulnerable to crises when conditions change.
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