Such concerns are primarily based on the assumption that structural changes and frictions in financial markets call for a broader toolkit in order to maintain monetary policy effectiveness.4 In particular, it is argued that the so-called natural real rate of interest has fallen significantly over the past decade.
This fits well with today’s theme, as monetary integration has been at the heart of Finland’s relationship with Europe already for one and a half centuries. The Bank of Finland, founded in 1811, is the fourth oldest existing central bank in the world.