Should-Read: Helene Rey: The Global Financial System, the Real Rate of Interest and a Long History of Boom-Bust Cycles: “Financial cycles strongly determine real short-term interest rates… http://www.bis.org/events/agm2017/sp170625_lecture.pdf …Wealth increases rapidly during financial booms, faster than consumption itself. As a consequence, the consumption to wealth ratio declines, as happened in the “Roaring 20s” and the … Continue reading Should-Read: Helene Rey: The Global Financial System, the Real Rate of Interest and a Long History of Boom-Bust Cycles