Shortly after I joined the Bank we outlined our ambitious vision to be a ‘Great Team and the Best Central Bank’.1,2 They say the first step to running a marathon is to tell everyone of your intention. This is our marathon.
Critics of the ‘low positive’ school challenge the assertion that monetary policy occasionally needs to reduce real interest rates below zero, and note other ways in which monetary policy can stimulate demand, particularly in very open economies where movements in the exchange rate play an important role in influencing aggregate demand in the short term.