Monetary Policy Debt Trap Threatens Financial Stability and Economic Growth
Lowering interest rates may not always help the economy and can actually make things worse. This is because it can lead to less bank lending, which hurts economic growth. Relying too much on lowering interest rates to boost the economy can also cause problems like too much debt and misusing resources. This can slow down the economy and make it harder to recover. In the end, it can create a situation where it's really hard to get out of debt without causing a lot of damage.