ZERP - Zero Interest Rate Period
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ZERP - Zero Interest Rate Period
When interest rate is extremely low, money is cheap to borrow, people will spend tons of money and economy will seem to do well, stock growth is also good.
There is no need to tighten the belt, corps can hire and hire and hire and become inefficient. They can do stuff that don't make money and that is still OK.
People coming out of college thought that it is their job to use money from corps to change the world and corps didn't push back to not be accused of being bigots and hate crimes.
Eg. Warner Bros CEO came on speech and told that we'll make what people want (not social justice pieces)
ZERP created a generation of companies that forgot what profit is. When rates rose in 2022-23, the layoffs started — not because the work stopped mattering, but because the artificial subsidy stopped. Lesson for builders: if your business only works with cheap money, it's not a business. It's a bet on monetary policy. Build for unit economics from day one. My BoM target of ₹30K for PvtServer base is exactly this discipline.