3 Independently of benefits pursued, extraordinary monetary accommodation may be generating significant costs, which could become more evident in the future. I would like to highlight three of them. One is the potential build-up of financial imbalances in the form of excessive risk-taking and growing indebtedness since the crisis.
Certainly, there is no evidence the world as a whole has been in a process of de-leveraging, particularly with increasing ratios of government debt to GDP taken into account. 4 Another manifestation of costs is the possible overvaluation of assets.