Some evidence suggests that the influence of monetary policy on real variables is greater than can be explained by the traditional "cost-of-capital" channel, which holds that monetary policy affects borrowing, investment, and spending decisions solely through its effect on the level of market interest rates. This finding has led researchers to look for supplementary channels through which monetary policy may affect the economy.
Regarding the other elements, the Council recognised that options that had been tried and tested in a completely different context were, for a number of reasons, out of the question.