Also, weakness in private investment – beyond that which can be explained by subdued domestic demand and falling commodity prices – has made a sizeable contribution to below-trend growth. The model also suggests that consumption growth has been a bit weaker than in the past.
These estimates provide some tentative evidence that the overall effect of monetary policy is neither more nor less effective than in the past. However, it may be that it’s too early to identify any structural change with the data to hand.