The concept helps us to remember that the level of rates matters, and that unusually high or low rates will most likely have to give way to more ‘normal’ levels eventually. But while it can in some circumstances give an indication of what the direction of rate changes should be, it is unlikely to give precise guidance on the size or timing.
To wrap up, the challenge in future will be how to translate the findings from new data into concrete policy implications. After all, the micro evidence has to add up to policy advice for monetary policy which is a macro policy with a rather limited set of instruments.