Hacker News Reader

I know this is counterintuitive but in order to spur growth, and encourage the right type of risk taking which is how you end up with innovations, I believe you need to have interest rates above a certain threshold. Indefinite ZIRP discourages risk taking and encourages financial growth arrangements.

View on HN

Can you elaborate on this? ZIRP encourages people to seek riskier investments, which presumably means to spur growth. Low risk financial arrangements are exactly what suffers.

Based on my limited observation as a layman, it seems to encourage reckless investments in ideas that seemingly don't work. How many more 100 million quid bike rental schemes does the world need?

But that’s not people going to “financial arrangements.” ZIRP does encourage over reckless investment in ventures with low chance of working out, I am just saying it’s different.

Reply on news.ycombinator.com