Well, I think monetary policy is more a symptom of a larger trend than the cause, but since the massive deleveraging (or Lesser Depression) the world has been a

Well, I think monetary policy is more a symptom of a larger trend than the cause, but since the massive deleveraging (or Lesser Depression) the world has been awash in excess savings looking for somewhere to go. A good explanation is here: http://krugman.blogs.nytimes.com/2009/05/02/liquidity-preference-loanable-funds-and-niall-ferguson-wonkish/ http://krugman.blogs.nytimes.com/2009/05/02/liquidity-prefer... [edit: wording]