You might mention that economic growth has been slower than it used to be across much of the advanced world, and global inflation and interest rates have been lower.
In recent weeks, for example, one groundbreaking paper proposes that low interest rates are fueling a rising concentration of major industries and low productivity growth.
The parents had complained vociferously, Mr. Mian recalled the friend saying, about the European Central Bank’s low interest rate policies.
Low interest rates should make it easier for small business owners to invest and expand; that’s one of the reasons central banks use them to combat economic weakness.
Mr. Mian, along with his Princeton colleague Ernest Liu and research partner, Amir Sufi at the University of Chicago, tried to figure out if the relationship between low interest rates and business investment might be murkier than textbooks suggested.
“At low interest rates, the valuation of market leaders rises relative to the rest,” Mr. Mian said.
“There’s a view that we can solve all of our problems by just making interest rates low enough,” Mr. Mian said.
This article was summarized automatically with AI / Article-Σ ™/ BuildR BOT™.