Other challenges stem from a prolonged period of low, albeit not negative, interest rates resulting from the decline in potential growth and the demographic effects on savings.14 Indeed, the apparent difficulties to reach higher levels of inflation and real equilibrium interest rates may hamper the capacity of monetary policy to deal with future recessionary episodes.15 Some economists maintain that monetary policy can do almost everything, even if it would require the use of very negative rates, either because they are against the use of fiscal policy or because they genuinely believe in some form of new monetarism.
Teachers are the most important factors for any innovative society because teachers’ knowledge and skills not only enhance quality and efficacy of education, but also improve the potential for research and innovation.