One economic theory blames boom-and-bust cycles on interest rates set too low
Austrian business cycle theory, developed by Ludwig von Mises and elaborated by Friedrich Hayek, argues that when central banks hold interest rates below their natural market level, businesses get tricked into borrowing for long, risky projects that don't match how much people are really saving. The resulting boom is unsustainable, and when the mismatch becomes clear, it collapses into recession as those projects get liquidated. Mainstream macroeconomics largely rejects it as a full explanation.