These developments are being closely monitored for signs of unsustainable increases which could have systemic implications for the banking sector, for financial stability in general or for inflation. But as I have illustrated above, the answer is not simple. In conclusion, the context that central banks operate in has become increasingly complex.
With a little help from my friends: Survey-based derivation of euro area short rate expectations at the effective lower bound, Deutsche Bundesbank, Discussion Papers 27/2018. 10.Deutsche Bundesbank (2016). The macroeconomic impact of quantitative easing in the euro area, Monthly Report, June 2016. 11.Kydland, F.E. and Prescott E.C. (1977). Rules Rather than Discretion: The Inconsistency of Optimal Plans, Journal of Political Economy, Vol.