Interest rates keep dropping. In my country in northern Europe we now have negative interest rate - banks have to pay the central bank for lending it their money.
I have two questions:
Why are interest rates lower than any time ever before?
Are low interest rates dangerous? The low interest rates will make it easier to borrow money for projects that would otherwise not have been possible. Irresponsible lending has proven dangerous in the past.
Are the low interest rates a way that the central banks are "artificially resuscitating" a poor economy which may finally lead to a crash?
Adding that we have never seen this situation before I ask if this situation with extremely low interest rates is dangerous?
One aspect of the question is: Are these low interest rates expected to stay low or are they considered an extreme value in a cyclic variation?