In other words, we anticipate that the margin of unused capacity in our economy will shrink substantially over the next couple of years. As I noted, there are those who view this outlook with scepticism. For them, it is not a question of lags.
They argue that the current very low interest rates will not do enough to encourage additional household spending, given high debt levels, a low savings rate, and high unemployment. I will not tell you that these factors cannot temper the response to low interest rates. Of course they can. But I do not believe they are sufficiently important to offset it.