Unfair Easy Money Policy Leading to Global Recession Risk
Monetary policy, like setting interest rates, is crucial for stabilizing the economy and preventing financial crises. The Federal Reserve in the U.S. has introduced new tools since the 2008 crisis to manage monetary policy. These changes have affected interest rates, financial markets, and deposit rates. The effectiveness of these new tools is being questioned, as they have led to negative real interest rates and wealth redistribution from depositors and taxpayers. The current easy money policy may lead to a new global recession if not adjusted to prevent future financial crises.