For example, higher tuition costs—reflected in increasing student loan debt—together with the rising costs of homeownership, have left many middle-income households in a poor position to save for a down payment or handle a mortgage.
A second lesson is that the responses of exchange rates and international financial flows to monetary policy innovations have shifted over time, especially in the light of the differences between “traditional” macro-financial environments and the current environment in which short-term policy rates are either low or negative and central bank balance sheets have expanded so much.