Structural changes in our economic system have exhibited a remarkable tendency to prove unpredictable. It seems that the only thing we can be certain about is uncertainty. This applies both to the future path of innovation and the future sources of financial crises.
The tensions over public debt securities have pushed down private bond prices and the corresponding issue prices, especially for banks. There has been little effect so far on interest rates on loans, in part thanks to high levels of liquidity and the improvement in banks’ balance sheets.