
Could Ultra-Low Interest Rates Be Contractionary? - yasp
https://www.project-syndicate.org/commentary/why-ultra-low-interest-rates-hurt-growth-by-ernest-liu-et-al-2019-09
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jhayward
> _extremely low rates may lead to slower growth by increasing market
> concentration and thus weakening firms ' incentive to boost productivity_

At the very least, low rates have shifted all of the income growth from labor
to capital.

Since capital assets can be purchased with "cheap" or "free" money (i.e.,
don't have to produce as much revenue to repay their cost), capital can be
used to supplant labor in more cases.

