Meanwhile, the hedge funds and other major players can hold their cards close to their chest (even the investors in LTCM were not given details of the portfolio). If markets truly work better when better informed, this principle should apply to all players who are big enough to move markets.
Looking back, in 1998, now nearly 20 years ago, Japan's policy interest rate -- which at that time was the uncollateralized overnight call rate -- already had been lowered to close to zero, at 0.25 percent. Given that economic activity and prices did not improve even in this situation, the Bank introduced a zero interest rate policy in February 1999.