The Paradox of Easy Money - the easier money or credit gets, the more likely there is going to be increasing credit risk! The easy money paradox is also associated with a Minsky Moment. When money is easy, anyone can get it. Standards for lending decline so the quality of a loan portfolio will decrease.
A loan officer who holds the line and will not lend to lower credits will lose business and see loan growth go elsewhere. Even if loan standards are held by some, the overall economy could get riskier with this easier credit which makes all loans more risky.
Monetary policy still has to focus on the bank credit channel. You can provide easy credit, but if there are no good project available, economic risks increase. Credit should be available but not easy.
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