BIS central bankers’ speeches  But there is another reason to absolve the exchange rate of accusations of overvaluation. The real exchange rate is only one measure of competitiveness. Productivity also matters. In a rich country, firms are already at the productivity frontier, so they typically can improve productivity only through innovation.
However, very low interest rates should last only for as long as absolutely necessary, since, like medicines, they are not without side effects. Savers are feeling dispossessed. It is a bit over the top to speak of dispossession. With our expansive monetary policy, with the low interest rate, we are pursuing our mandate to ensure price stability.