In other words, in terms of balance-sheet adjustments, the United States has the advantage that policy interest rate reductions bring about income transfers that are favorable to the country. However, there are also risks involved in continued low interest rates.
If the continuation of low interest rates leads to a substantial rise in long-term interest rates by raising inflation expectations or by generating expectations for a weak dollar, this may give rise to another problem, namely that the fiscal burden increases and in turn the need for adjustments in the government's balance-sheet arises.