This downward bias in inflation expectations under inflation targeting in an ELB world can in turn reduce already scarce policy space—because nominal interest rates reflect both real rates and expected inflation—and it can open up the risk of the downward spiral in both actual and expected inflation that has been observed in some other major economies.
When speaking of desirable tendencies in further development of debt instruments, we should reflect on the achievements so far, which are not insignificant considering the current, unfaltering crisis. The market of government securities had not even been set up until a few years ago, and today it is practically the dominant source of government funding.