Indeed, the constraint of “zero lower bound” of a nominal interest rate, which was believed to be impossible to conquer, has been almost overcome by the wisdom and practices of central banks, including those of the Bank of Japan. I am convinced that there is no limit to measures for monetary easing.
Our ability to foster financial stability depends on having a staff with a diverse range of knowledge, expertise, and skills. The Fed is accustomed to using interdisciplinary approaches to solving problems, and that perspective often gives us a more accurate picture of financial activities and the potential risks they produce.