I will now expand on the first aspect and try to bridge it to the problem that, in my view, undermines the policy benchmarking function of simple policy rules in unconventional monetary policy times like the present.
We are now in the middle of a storm, but it’s still worth thinking well ahead and envisaging new circumstances and opportunities. Remember that when the delegates from the 44 Allied nations gathered at the Mount Washington Hotel in Bretton Woods, New Hampshire, in the summer of 1944, the Second World War was still underway.