So far the introduction of negative interest rates in the area has been smooth; other countries seem not to have experienced difficulties in lowering rates further into negative territory. 26. Let me conclude with the obvious remark that monetary policy cannot guarantee strong and lasting growth on its own.
In carrying out this analysis, we have been especially mindful of the possibility that the amount by which a capital gain affects spending may well be a function of whether or not the gain has been realized. On the buyer’s side, when an asset is transferred, the acquisition cost is its new book value and, by definition, its market value.