All this points to a more limited impact of the Balassa-Samuelson effect than is sometimes claimed. In sum, aiming for inflation rates below but close to 2% offers an additional safeguard against the rather remote but undesirable event that nominal interest rates could hit their lower bound at zero.
Financial regulation and economic policies for avoiding the next crisis (Urjit R. Patel, Governor, 32nd Annual G30 International Banking Seminar, October 15, 2017, Inter-American Development Bank, Washington, D.C.)  1. Let me start by reminding ourselves of some numbers that are a key  backdrop for today’s panel discussion.