BIS Review 67/2010  1  However, enthusiasm for this proposal seems to be fading. One explanation for this might be that recent developments have provided reassurance that the zero interest bound does not constitute a restriction on monetary policy.
In our case, the flexibility of monetary policy in Economic and Monetary Union has not been limited during the crisis despite very low interest rates. The success of unconventional monetary policy measures has shown that central banks have more instruments at their disposal than just the short-term interest rate.