Commentary The history of economic development can’t be understood without the importance of recession periods. Recessions are often the result of the excess accumulated in previous years. Creative destruction after a period of excess used to drive a stronger recovery and continued economic development. That was until risky assets became the biggest concern for policymakers. From the late seventies and early eighties U.S. housing slump and automobile industry crisis to the technology and housing bubble burst, there’s a clear process of causation created by interest rate policy. Constant decreases in interest rates lead to excessive risk-taking, complacency, and accumulation of exposure to increasingly expensive assets under the perception that there’s no risk. Bubbles become larger and more dangerous, because interest rates are kept abnormally low for a prolonged period, and it disguises risk, clouding citizens’ and investors’ perception of danger in elevated valuations. Cheap money leads to generalized and dangerous …