Bank for International Settlements 2009/10 Annual Report

The Bank for International Settlements (BIS) annual report includes highly topical economic analysis, including Section III, which discusses the potential ramifications of extended periods of low interest rate policies.  In particular, the report notes that the resulting ’search for yield’ can result in distorted financial innovation, lack of real investment, and an unwarranted increase in asset prices/decline in risk premia.  (BIS)

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