For many advanced economies, this means that the ZLB has been a more enduring constraint on monetary policy than anticipated. This is not to say that central banks are powerless at the ZLB. In fact, a growing body of evidence suggests that UMPs have had a positive impact on economic activity and inflation.
It is a pleasure to meet friends old and new in Shanghai in this beautiful autumn to discuss macro-prudential policy. On behalf of the People’s Bank of China, I want to extend the warmest welcome to representatives from international organizations and officials from central banks, ministries of finance and financial regulators.