It's simple - in theory - a central planning body, who knows what is best for the rest of society, lowers interest rates (to reduce the cost of capital, encourage entrepreneurial actvities, and stimuluate the economy - and therefore jobs - for the average joes and josephines of the world).
So the 'smartest people in the room' cut interest rates, lowering the cost of capital to the lowest in 5000 years...
[3]
But a funny thing happens when the world is saturated in debt, leveraged to the max, and liquidified by lenders of last resort... the textbook breaks!
And the real economy "gets nothing"
[4]
But do not let that stop them trying it again.
Charts: BofAML
