Together with Emile Grunberg, he made a major contribution to our understanding of the role of expectations as early as 1954; this issue recurred frequently in his thinking. Governing an economy – through fiscal policy, monetary policy and structural reforms – is a complicated task.
Since our September 2014 monetary policy decisions, the MRO rate has been fixed at 5 basis points, the marginal lending rate at 30 basis points, and the deposit facility rate at minus 20 basis points. Under normal circumstances, the so-called “policy rate” of macroeconomic models would correspond to our MRO rate.