[1] I am grateful to John Hutchinson and Arthur Saint-Guilhem for their contributions to this speech. [2] For example, Ben Bernanke calculates that the combination of asset purchases and forward guidance can add about 3 percentage points of policy space for the United States, assuming a neutral nominal rate in the range of 2 to 3 percent, see Bernanke, B.
(2020), “The New Tools of Monetary Policy”, presidential address at the American Economic Association Annual Meeting, January. [3] For a detailed discussion of the sources of complementarities across these instruments, see Lane, P. R. (2019), “Monetary policy and below-target inflation”, speech at the Bank of Finland conference on Monetary Policy and Future of EMU, 2 July.