In fact, it is clear that the swap curve constitutes a widely used reference for the pricing of private sector debt instruments as well as the measurement of market risk on these instruments. With regard to derivatives instruments, I am confident that financial market institutions will come up with solutions to any possible shortage of the underlying government bonds.
A broad consensus has emerged about the aggregate effects of interest rate policy. The econometric models, mainly structural vector autoregressions, show that policy rate changes have significant effects on both inflation and economic activity. Maximum effects occur with a lag, with the impact on inflation taking somewhat longer to materialise than the impact on the real economy.