. . . and then there are days where I read something like this (from the FT):
The debate about the effectiveness of unconventional monetary policy measures such as quantitative easing remains perennially inconclusive. Yet the experience of Japan suggests there is one clear negative outcome from ultra loose monetary policy: it does structural damage to the economy.
PS. I suppose if one is looking for examples of “ultra loose” monetary policy causing damage to an economy, then the US during the 1930s could also be cited.
HT: John S.