FYI: The EBC's QE announcement has made it clear they intend to keep interest rates in the euro area at very low levels for a long period of time. This policy should
help to boost economic growth and move inflation back towards the ECB’s target
. However, every economic policy produces winners and losers and certain sectors of the economy will be negatively affected by this policy. This paper presents evidence on sectoral balance sheets and household asset holdings to explain how low interest rates affect various groups. It also discusses the impact a prolonged period of low interest rates has on different types of financial institutions. The paper concludes that, at present, the risks of low interest rates provoking a new financial crisis are low.
Regards,
Ted
http://www.ritholtz.com/blog/2015/03/low-interest-rates-and-financial-stability/print/
