The Trade Cycle

https://mrdevinney.com/the-trade-cycle/

The role of interest rates allocating resources is critical to the trade cycle. Booms and busts begin when interest is manipulated. Lowering the rate might stimulate the economy in the short run. This will give the appearance of profitability. However, the manipulation misallocated resources. Projects that wouldn’t have been undertaken under natural conditions are taken under the manipulated rates. An adjustment will happen eventually.