As the RBA pushes interest rates to record lows and the stock price of financial technology company Afterpay surges to record highs, it’s time to reflect on whether the world is getting everything it can from an environment of easy money.
Low interest rates and loose money are doing what they are supposed to, no doubt. Businesses that would have been marginal or impossible in the old world of 6% interest rates become viable ideas, and some grow. All this propels us through an age of innovation, but what are the roll-on effects? And importantly, what are we missing?