Loose interest rates are good policy regime but has its own drawback too. Firstly it helps achieve higher economic growth for nation and high liquidity into market. However issues like depreciation of currency and high inflation are some issues encountered. Its efficiency is seen as US grew much higher and transformed into robust economy after 2011 with low trade deficit and higher GDP per capita.
However rest rictive policies can hamper the economic growth suddenly but bring dollar appreciation.
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