Low Rates Don’t Cause Bubbles

Ben Southwood sent me an interesting debate on Twitter: Perhaps a good place to start is “never reason from a price change.” Asset prices collapsed in 2008-09, during a period of very low, and falling, interest rates. The response might be that, holding business cycle conditions constant, low rates tend to trigger bubbles. In 2009 [...] View the full post at: Low Rates Don’t Cause Bubbles Related posts: Asset Bubbles: The Fed Makes a Bid Battling Bubbles and Crashes Lower Interest Rates and Home Prices