What we are trying to build is the Delta Project of the financial system that will protect it from risk excesses. If I may say, in this sense we are fortunate that the Basel Committee is chaired by a Dutchman!
Also, negative policy rates could become more prevalent, and rates could even fall further. Tools such as long-term interest rate targeting and fiscal deficit monetary financing may gain traction. All these measures will make eventual unwinding of lax polices more complex and riskier in terms of price and financial stability. 9 Low effectiveness of monetary policy could lead to disillusionment and loss of credibility.