Central banks have done nothing to end the boom-and-bust cycle. Instead, their unscrupulous interventions in credit markets just prolong the boom. But it's a huge mistake to assume that bringing market interest rates to zero will create a perpetual boom.
In order to expand production and increase productivity — and thus increase the standard of living — it is necessary to use capital. And so it makes sense to pay interest on capital lent, so as to encourage the maintenance and production of capital for the future.
Central banks’ economic models predict deeper negative rates are necessary in the event that a significant recession materializes. This would be a disaster.
Ignoring time preference is the fundamental error behind monetary planning. It is why in a successful economy, monetary intervention by the state is kept to a bare minimum, or preferably banished altogether.
The fallacy that labor-saving machines create technological unemployment has not only been disproved by theory but also by the whole history of mankind.
