As that expansion continues, both large and community banks will have to once again look beyond their core deposit base to fund those demands. The competitive environment for banks, especially community banks, will continue to intensify. Both history and current behavior suggest, however, that community banks can innovate and meet these competitive challenges.
The conclusion: inflation didn’t change much, so the policy isn’t working. However, what is rational and essential is to examine what would have happened had the policy not been adopted in the first place.