Downloadable! A model is constructed in which households and banks have incentives to fake the quality of collateral. These incentive problems matter when collateral is scarce in the aggregate when real interest rates are low. Conventional monetary easing can exacerbate these problems, in that the misrepresentation of collateral becomes more protable, thus increasing haircuts and interest rate Low Real Interest Rates, Collateral Misrepresentation, and Monetary Policy by Stephen D. Williamson. Published in volume 10, issue 4, pages 202-33 of American Economic Journal: Macroeconomics, October 2018, Abstract: A model is constructed in which households and banks have incentives to fake the qu Monetary policy, low interest rates and low inflation Dinner remarks by Philip R. Lane, Member of the Executive Board of the ECB, at the Centre for European Reform . London, 27 February 2020. It is a pleasure to be invited to speak at the Centre for European Reform.