‘Crash Monday’ is the price we’re paying for a decade of cheap money | Larry Elliott

‘Crash Monday’ is the price we’re paying for a decade of cheap money | Larry Elliott

'Crash Monday' is the price we're paying for a decade of cheap money. The coronavirus crisis underlines the disconnect between interest rates and productivity growth. With a bit of encouragement from central banks, financial markets quickly regained their poise after the 1987 crash and resumed a long upward climb that only came to an end with the financial crisis of 2007.. For the past decade, the underlying fragility of the global economy has been masked by perpetually low interest rates.. The world economy was slowing even before China came clean about the true threat posed by the coronavirus.. Instead the parallel drawn is with the 1970s when the first oil shock was followed by a second - even more serious dislocation - later in the decade..