But the echoes of the 1970s and 1980s – an intellectually formative period for most of us here – took a long time to fade; just as nominal interest rates took time to recognise rising inflation, they took time to recognise what was clearly, in hindsight, a fundamental regime shift in inflation which occurred in most countries in the mid 1980s.
One scenario would be that the problems in money markets disappear before any upside risks to price stability emerge. This means that the non-standard measures could be unwound before rates are raised, and the withdrawal of the measures would not be expected to have much impact.