Instead of rejoicing that they can now borrow more cheaply, they think: ‘Sure, it is a good thing that I can borrow for next to nothing. But for the central bank to allow interest rates to drop so much, things must be looking grim! I won’t invest even if they hand me the money.’ That’s the reason investment refused to recover, even after central bankers cut money’s official price to almost zero. And that was only half of their post-2008 nightmare.
