Larry Summers and the never-ending bubble economy

Lawrence Summers
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When the recent McKinsey study on the effects of unconventional monetary policy challenged the idea that very low interest rates could provide much economic stimulus, the reasoning was pretty straight forward.

A "'rational expectations" investor who takes a longer-term view should regard today's ultra-low rates as temporary" and therefore won't change his investment plans in ways that boost asset prices or economic growth, according to the analysis.

The basic premise—that low rates are about to end any minute now—informs a lot of discussions around markets and economics today.