[3] Academics and central bankers alike have focused on the slope of the Philips curve rather than the slope of the IS curve. A few studies suggest that monetary policy transmission may be non-linear in the level of the interest rate.
[4] This could affect the extent to which we can bring future activity into the present: researchers have dubbed this the “macroeconomic reversal rate”. [5] Before the pandemic, for example, we observed stagnation in households’ intentions to frontload major purchases (see left chart slide 8). The household gross savings rate has increased rather than fallen.