Skip to content
Subscriber Only
Narayana Kocherlakota

Easy Money Is Like Insulin

Low interest rates are just what the doctor ordered.
Keep it coming.

Keep it coming.

Photographer: Jean-Francois Monier/AFP/Getty Images

Critics of global monetary policy regularly argue that the current level of interest rates is artificially low. A simple medical analogy might help them understand how wrong this thinking is.

Picture a young woman diagnosed with Type I diabetes, in which the body fails to produce the insulin needed to metabolize sugar. Her life changes completely. She must constantly monitor her blood sugar levels, adjust her diet and take insulin via injection or pump. Otherwise she will die.