Paradox of credibility

A term that emerged around 2005 in connection with monetary policy to describe the fact that – when a central bank pursues a credible monetary policy – it keeps inflation and thus interest rates low, – many investors around the world turn to high-risk financial products in pursuit of high returns. The consequences of the subprime crisis have been (partly) explained in this way by some observers. – See Carry Traders, Elizabeth Question.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/