Moreover, an accommodative monetary policy can, in and of itself, encourage financial actors, especially banks, to more eagerly take on risk. If low-risk investments generate lower and lower yields, at least nominal yields, financial actors will tend to add higher-risk, but higher-yielding investments to their portfolio.
And at a time when our elected officials are confronted with a myriad of options to address a slowing economy, or when they consider the increasing fears about a globalizing economy, it's fair to ask whether they are getting good economic counsel from their constituents.