JPMorgan's Frenkel Says Low Rates Need to Be Addressed

The video discusses the actions taken by central banks following the financial crisis, focusing on low interest rates and quantitative easing. It highlights the unexpected prolonged effects of these policies, such as low inflation and productivity, and the risks of economic bubbles. The video also explores the interrelation between inflation and productivity and emphasizes the need for monetary policy normalization.

What unintended consequences have arisen from prolonged low interest rates?

Why does the speaker believe that inflation should not be the only gauge for monetary policy?