Economics
Central Bankers Are Playing a Dangerous Game With Asset Prices
- Benchmark interest rates have been lowered around the world
- Policy makers need to balance slowing growth and systemic risk
July 23: UBS CEO Says `We're at Risk of Creating an Asset Bubble' in Europe
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The world’s central banks are in danger of storing up problems for later by taking action to ensure the economic expansion stays on track.
In cutting already low interest rates to bolster a sagging global economy, monetary policy makers risk fueling asset bubbles that may eventually burst and propping up zombie companies that could keep dragging down growth. They’re also encouraging a dangerous build-up in leverage in a world where total debt is already approaching $250 trillion.