“85th Annual Report, 1 April 2014–31 March 2015,” June, p. 92. 8  Increasing levels of corporate debt in emerging economies are presented in IMF (2015). Global Financial Stability Report, Chapter 3, p. 84. BIS central bankers’ speeches  3  Furthermore, balance sheets will not diminish in the near term and may even expand in some places.
Also, negative policy rates could become more prevalent, and rates could even fall further. Tools such as long-term interest rate targeting and fiscal deficit monetary financing may gain traction. All these measures will make eventual unwinding of lax polices more complex and riskier in terms of price and financial stability. 9 Low effectiveness of monetary policy could lead to disillusionment and loss of credibility.