What is preventing a full-fledged economic recovery? If interest rates are at zero or nearly zero, it follows that something is holding the economy back. Think of paddling a kayak against a strong headwind – it can take a lot of effort just to hold your position, let alone make real progress.
It is widely agreed that the conditions that led to the financial crisis included taking on excessive leverage. As individuals and financial institutions have attempted to deleverage in the wake of the crisis, economic growth has been held back. It is difficult to say when the deleveraging process will be complete, at least at the global level.