I would also like to emphasise that even at zero rates the central bank can stimulate lending by entering directly into the credit market, making up for the absence of lenders and buying long-term assets. 18 This however implies that the central bank is willing to take the capital losses that are likely to emerge when interest rates are increased again.
The most likely scenario is one of successive crises/shocks of different magnitudes and intensities. Some experts, for instance Roubini, foresee a number of big crises yet to come. Stock, bond and foreign exchange markets are currently characterized by higher levels of volatility than those observed during the Lehman period.