The other reason is that there is no timetable for an increase in interest rates -- businesses can delay investment until better times because there will be no cost associated with that delay. A rise in inflation would help to address that, as businesses would know that low interest rates will have to end at some point -- they would now be viewed as a finite opportunity and costs would be associated with inaction.

The biggest risk, the article argues, to the financial environment is that the U.S. economy would cease to be a driver of economic growth. Europeans interviewed in the article are already worried about their role, but as developing nations experience strong growth they are poised to take over leadership roles in the world. While this sentiment is perhaps premature and alarmist, there are significant implications would China, India and Brazil begin to take over. Those countries...
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