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Prolonged economic expansions may not be a good thing, as the aggressive actions taken by governments and central banks to avoid recessions can lead to negative consequences, according to a report by Deutsche Bank economists Jim Reid and Craig Nicol. "This policy flexibility and longer business cycle era has led to higher structural budget deficits, higher private sector and government debt, lower and lower interest rates, negative real yields, inflated financial asset valuations, much lower defaults (ultra cheap funding), less creative destruction, and a financial system that is prone to crises," Reid and Nicol wrote.

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