Ushered in the first change, the end of commodity currency and the advent of legal tender. When all currencies are decoupled from gold and silver, the second change in the currency cycle is the era when central banks are issuing a large amount of money.
Coming soon, because you can print as much legal tender as you want. In order to stimulate economic growth, central banks of various countries have begun frequent quantitative easing, that is, printing a large amount of money. want.
There are two ways to stimulate the economy, one is to cut interest rates, and the other is to issue currency. Interest rate cuts are the healthiest and most effective policy tool. Lower interest rates can stimulate consumption and stimulate investment.
It can also reduce the debtor's repayment burden, so cutting interest rates can promote economic growth. This is a bit like stepping on the accelerator while driving. Every government hopes that the economy will develop faster and faster.
So the accelerator will be stepped harder and harder, and the interest rate will drop lower and lower. The current benchmark interest rate in the United States has reached zero, and Japan and Europe are implementing negative interest rates, which means that the throttle of major countries has been stepped on to the bottom.