As always, the  2  BIS Review 56/2001  underlying issue is how to adopt and price realistic assessments of likely credit risks under alternative scenarios, keeping credit flowing to worthy borrowers at reasonable prices.
It was claimed that it was not feasible because of structural reasons, defined as ‘nominal rigidities’ or a ‘monopolistic structure.’ In any case, a low inflation rate was said to be achievable in Israel only if it was ‘latent,’ in which case it would be bound to re-emerge at the first opportunity.