“Low for long” policy rates: Risky but needed to keep the global financial system in balance

Are low interest rates storing up more trouble for the future? This column argues that low interest rates have been necessary to sustain large current-account imbalances. With global imbalances unlikely to be redressed any time soon, low interest rates may be the best option for a while longer – but this policy is not without its risks.

Read this article on Voxeu.org here.