This would indeed be the case for many advanced economies today, for which the interest bill is not the main component of the deficit. 1  Leszek Balcerowicz’s lecture is published in Italian and English by IBL Libri, Torino (info@ibl-libri.it, www.ibl-libri.it), and forthcoming in German in P. Behrens – Th. Eger – H.D. Schäfer (eds. ), Ökonomische Analyse des Europarechts, Tübingen, Siebeck Mohr.
That said, if the low interest rate environment is prolonged further, it will become necessary to pay closer attention to the costs of policy measures, including the impact on the functioning of financial intermediation and market functioning. Thus, the Bank recognizes that there remains an important challenge to consider what is required to further enhance the sustainability of policy measures.