In light of the unprecedented (in terms of both speed and "unanimity" if you will) measures that have been taken on the central banking front in the aftermath of the 2020 economic crisis, many market observers are asking a common sense question: how low can interest rates go?


A few decades ago, today's ultra-low interest rates (even negative interest rates in the European Union and Japan) would have been considered a downright ludicrous concept but in 2020 and seemingly beyond, the idea that there are pretty much no limits as to how low interest rates can go is propagated in certain circles.


Unfortunately, that is hardly a logical position to take. While it is true that the post-Great-Recession interest rate reductions have not resulted in widespread inflation and/or confidence in central banks (the proverbial system, if you will), this video explains why there are most definitely limits in the world of interest rates.


How low can interest rates go? Most likely not that much lower, which makes this a both crucial and problematic/complex topic to tackle.

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