And we need to be aware that the longer we stay in ultra-loose monetary policy mode, the less effective this policy will become and the more the attendant risks and side-effects will come into play – take the exuberance in some financial markets and the problems faced by life insurers as examples.
The conclusion: inflation didn’t change much, so the policy isn’t working. However, what is rational and essential is to examine what would have happened had the policy not been adopted in the first place.