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by jbjbjbjb 1739 days ago
But if you go one move deeper central bankers will factor the high leverage in and therefore won’t increase rates.
1 comments

In order for central banks to mitigate future recessions, they need be able to make rates go down too, not just not increase them. And when rates increasingly approach zero, there won’t be much they can do, except buy the assets - which they have done and are not supposed to.