Conflict of interest: have low cash rates created the ‘everything bubble’?

The ‘extraordinary low interest rates’ set by central banks have created all manner of perilous asset bubbles, argues Edward Chancellor. Photograph: Daniel Munoz/Reuters

Twenty years ago, a youngish economist destined to become a household name in Australia issued a warning to central banks everywhere.

“[L]owering rates or providing ample liquidity when problems materialise but not raising rates as imbalances build up, can be rather insidious in the longer run,” he said.