Hence, QQE has put into practice the mechanism common to the theories of Paul Krugman, Michael Woodford, and Gauti Eggertsson, which is to encourage a decline in real interest rates through raising inflation expectations and thereby stimulate the real economy.
Concluding remarks – remaining challenges with regard to theory of unconventional monetary policy Let me conclude my speech by adding my own view concerning remaining challenges in the realm of monetary theory concerning unconventional policy.