•  And on top of all the above, serious distortions were created because of tax regulations that were introduced at a time when the government was involved in everything, and that really was a long time ago. Our ability to change these regulations seems to be further away now than ever.
The reason why I am bringing all this up here is because monetary policy only begins when the central bank sets 'its' key interest rate. Shifts in this interest rate should have an impact via the changes it causes in the behavior of households and firms.