The pre-crisis period witnessed efforts by financial engineers to find solutions to real sector problems in the financial sector. A very key reality was lost sight of which is, financial sector exists to subserve the real sector and it should not be allowed to run ahead of the real sector.
On the other hand, we also observe a decline in the contributions from non-energy industrial goods and most notably services prices – both of which are more closely related to fundamental factors. 2  BIS central bankers’ speeches  Also, low inflation can be an outcome of policy measures.