16 In my view, the review should make clear that the Committee will actively employ its full toolkit so that the ELB is not an impediment to providing accommodation in the face of significant economic disruptions. The importance and challenge of providing accommodation when the policy rate reaches the ELB should not be understated.
But the design of the euro, topic of tonight’s T.K. Whitaker lecture to be given by Professor Harold James of Princeton University, did not, as many had assumed, protect members from macro-financial distress.