3 This possibility, unlike the other two concerns, was regarded as sufficiently serious to preclude consideration of a lower target without further study. The Bank didn’t realize then that the real world was about to give it a natural experiment of almost unprecedented proportions with which to test the significance of the zero bound.
Mark Carney: A monetary policy framework for all seasons Remarks by Mr Mark Carney, Governor of the Bank of Canada and Chairman of the Financial Stability Board, at the 2012 US Monetary Policy Forum, sponsored by The Initiative on Global Markets, University of Chicago Booth School of Business, New York City, 24 February 2012.