At this juncture, it would be useful to clarify that limited liability, even though is enshrined in modern corporate law as a right, should rather be viewed as a privilege of the shareholders. While the argument for limited liability structure is that it promotes entrepreneurship and innovation, an investment in a project is always a case of a risky bet that is calculated.
It is possible, for example, that it may be necessary for the federal funds rate to run temporarily below its normal longer-run level because the residual effects of the financial crisis may continue to weigh on economic activity. As such factors continue to dissipate, we would expect the federal funds rate to move toward its longer-run normal level.