I can't even imagine how big of an economic correction they need after an entire generation of ZIRP. We needed an enormous correction after about a decade of zero interest rates.
both the state and large parts of the private economy have adapted to this. even the minimal interest rate hikes of the real interest rate, which has barely made it into positive territory, are putting such a strain on the entire system that everything is under massive tension. i think a normalization of interest rates in europe would bring this system to collapse.
reply
It distorts everything. We had a great discussion about it last year: #296154.
reply
Ah, rhanks
reply