1.2  The ECB’s recent policy stance  Turning to the euro area’s case, let me quickly remind you of the ECB’s monetary policy stance over the last nine years as a response to the worst financial crisis since the Great Depression, leading to negative interest rates and entering practically unchartered territory (Table 4).
1.3  Some theory behind negative policy interest rates  In theory, the transmission of negative policy interest rates to economic activity should be close, but not similar, to a standard rate cut that leaves policy rates positive. Let me explain.