This experience denies the idea of a contradiction between price stability and stability in the real economy. Although the orientation of monetary policy towards curbing inflation has clearly been a major international success, it must be admitted that monetary policy has not been the single determinant of the strongly falling inflation. Another driving force with a similar effect has been the much discussed globalisation.
Against this background, low interest rates are a tool to maintain price stability. And price stability is a pre-requisite to bring the economy back onto a sustainable growth path. Higher key interest rates would have exacerbated the recession, delayed the recovery and contributed to deflationary risks. Higher interest rates would therefore hurt savers.