While each of these measures has specific benefits, they also all have limitations or are subject to constraints. Against this background, it is important to emphasise that, while having to resort to nonstandard tools, monetary policies also remain effective in fighting the global liquidity trap  1  Hyman P. Minsky (1994), “The debt-deflation theory of great recessions”, Hyman P. Minsky Archive Paper 159.
Retaining that credibility is of utmost importance. Although the attainment of price stability after a period of higher inflation was a landmark achievement, monetary policymaking in an era of low inflation has not proved to be entirely straightforward. In the 1980s and 1990s, few ever questioned the desired direction for inflation; lower was always better.