In real terms, the policy rates turned negative while the real lending rates almost halved to around 3.7 per cent during the post-crisis period (Table 6). Despite lower real interest rates, investment has slackened reflecting the role of non-monetary factors in the growth slowdown.
A comparison of inflation expectations shows that we have had one of the best “anti-deflation” protections of comparable advanced countries. The movement of the “indignant ones” is on the rise around the world. Do you understand these feelings of helplessness in the face of globalisation?