The unintended consequences of easy money

Jack Farley of Blockworks posted an interview with William White on 18 November. The interview focused on issues raised in a more technical paper White recently had posted on the INET website (see Publications). Ultra easy monetary policy is increasingly ineffective in stimulating aggregate demand and its negative side effects are becoming increasingly apparent. The discussion also touched upon the distributional implications of the current stance of monetary policy, and the likelihood that “financial repression” might be a solution to the current overhang of debt that has been generated by monetary policy.