Furthermore, it takes time to reabsorb the over accumulation of capital and capacity that occurred prior to the crisis. Overall, that growth remains weak in the years after a banking crisis is certainly not atypical and has been well documented (Reinhart and Rogoff, 2009).
Second, in the long-term, market expectations about future monetary policy rates are being very much influenced by the difficulty in normalising inflation and by the pessimistic views about the long run growth prospects of the advanced economies which I will address later.