Looking back today, it has been a very exciting decade – too exciting perhaps – from a central banking perspective. High public debt levels restrained the fiscal capacity in a number of countries following the financial and economic meltdown. Thus, central banks were more or less left on their own to support economic activity.
Consequently, very low and even negative policy rates have become common globally, alongside massive expansions of some central bank balance sheets. Danmarks Nationalbank was a central bank pioneer when we first cut our deposit rate below zero already in 2012. This was done to offset large capital inflows.