Why interest rates are lower than any time ever before

Assignment Help Business Economics

Reference no: EM13770139

Interest rates keep dropping. In my country in northern Europe we now have negative interest rate - banks have to pay the central bank for lending it their money.

I have two questions:

Why interest rates are lower than any time ever before?

Are low interest rates dangerous? The low interest rates will make it easier to borrow money for projects that would otherwise not have been possible. Irresponsible lending has proven dangerous in the past.

Are the low interest rates a way that the central banks are "artificially resuscitating" a poor economy which may finally lead to a crash?

Adding that we have never seen this situation before I ask if this situation with extremely low interest rates is dangerous?

One aspect of the question is: Are these low interest rates expected to stay low or are they considered an extreme value in a cyclic variation?

Reference no: EM13770139

Questions Cloud

Provide a detailed hypothetical mission : Provide a detailed hypothetical mission and value statement for the hospital. Provide a rationale for the development of your particular mission and value statement

Excess reserves-maximum checkable-deposit expansion : Give an equation that shows the relationship between excess reserves, maximum checkable-deposit expansion, and the monetary multiplier.

What are the state and federal objectives of punishment : What are the state and federal objectives of punishment? How does sentencing affect the state and federal corrections systems overall? Support your answer

Why interest rates are lower than any time ever before : Interest rates keep dropping. In my country in northern Europe we now have negative interest rate - banks have to pay the central bank for lending it their money. Why interest rates are lower than any time ever before?

Which are the typical results of job analysis : Recruitment begins by specifying _____, which are the typical results of job analysis and workforce planning activities, During the _____ stage, it is most important to select the managers who can develop stable management systems to preserve the ga..

Sale of used goods do not add to income of a country : Why do sale of used goods do not add to income of a country in a particular year? If you think of income as the inflow in your bank account. All outflows are just expenditures. So I think of income as how much stuff can someone buy in a particulate y..

Explain why attribute of aviation professionalism : Explain why this attribute of aviation professionalism impressed you. Relate this attribute of aviation professionalism to another aviation career field besides the career field discussed by the author, Tom Murphy, in the passage that you quoted.

Find three web sites about hypothesis testing of means : Find at least three web sites that you can understand about "Hypothesis Testing of Means" or "Hypothesis Testing for Means." One can be StatTrek.com, if you want.

User Account

All Pages