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there are 2 failure points here. one is that when the cost of capital is too high the people simply cannot do anything. very few people will know how to get greater-than-holding-bitcoin returns no matter how much they are incentivized & beaten

another is that when monetary policy is too loose, it incentivizes net negative business behavior (zombie companies) even though they are "producing" measured by money output

e.g. the avocado toasting company makes a nominal PROFIT but the cost of imported soybeans is rising faster than the profit can be made the buying power of the business owners is going down & they will eventually die from soybean starvation

so loose monetary policy masks inefficient businesses that may actually be losing money while tight monetary policy makes everyone depressed because they tried learning to code once and it made them feel stupid and worthless

e.g. u buy avocadoes for 1 and sell the toasted for 3. that's 2 of profit but then an 8 yr old asian child figures out that toast goes really well with mozart. they r buying at 1 and sell toast at 1.5 but with mozart added they can sell at 2

so the small child is being incentivized to figure out more and more ways to add value while also getting really good at piano when this discrepancy is discovered, the knee jerk reaction isn't "oh wow what a talented kid!"