How Persistently Low Interest Rates Can Hamper Productivity and Growth

The video discusses the impact of persistently low interest rates on the economy, highlighting how they can lead to increased market concentration and monopoly power, which in turn slows down economic growth. It explores the implications for policy, suggesting a shift towards fiscal policy rather than relying solely on interest rate adjustments. The discussion also covers the effects on startups, where large companies may acquire them too early, stifling innovation and competition.

In what ways can low interest rates lead to a contractionary effect on the economy?

How might fiscal policy be used as a solution to the challenges posed by low interest rates?

What are the structural changes contributing to the low interest rate environment?