The proposition that money has no real effects in the long run, referred to as the principle of long-run neutrality, is universally accepted today by monetary economists. When Friedman wrote, however, the conventional view held that monetary policy could be used to affect real outcomes - for example, to lower the rate of unemployment - for an indefinite period.
On the whole, however, our assessment of our experience with negative interest rates continues to be positive as the benefits continue to outweigh the costs.1 In this regard, our two-tier system for reserve remuneration has been acting as an effective mitigation tool for the banking sector.