The rate of interest is the market price of risk. In the zero interest rate world, the market loses the ability to distinguish high risk from low risk in many financial assets. Clearly this is a nonsensical situation, and it's likely to end very badly...
The rate of interest is the market price of risk. In the zero interest rate world, the market loses the ability to distinguish high risk from low risk in many financial assets. Clearly this is a nonsensical situation, and it's likely to end very badly...