The BIS Review 38/2000  2  transmission process has also turned out to be much more complex than originally thought and cannot be restricted to one or only a few parameters. Nevertheless a central bank must not disregard the sensitivity of investment when trying to estimate its impact.
It is a fact that the environment is such that the neutral real interest rate… …that means the interest at which real GDP is growing at its trend rate and inflation is stable… … That this rate is negative at the moment and that it will be very low or even negative for quite a while.