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Rates near zero is part of the reason the stock market has been on a tear the last few years. It also was a driver of the housing bubble. It didn't cause the h
by drumdance 10y ago
Rates near zero is part of the reason the stock market has been on a tear the last few years. It also was a driver of the housing bubble.
It didn't cause the hyperinflation that a lot of people thought would come, but the Great Depression is Bernanke's area of expertise, and he had sound theoretical reasons to believe QE wouldn't spark serious inflation.
- dragonwriter 10y agoThe near zero rates occurred in response to the economic crisis after the housing bubble burst, not a driver of the bubble.
- hueving 10y agoRates were also comparatively low during the 2000s to juice the economy after the tech bust and 9/11. They got even lower after the crash and QE, but they were the lowest they had been in the 00s since the early 60s.