6 That means that, if we continue to target a 2 per cent inflation rate, it’s more likely that policy interest rates will fall to zero than in the past. Remember, only a few years ago, many believed zero was where monetary policy was out of bullets. We now observe that some European countries have tested this limit.
Alan Greenspan: The September 11 tragedy and the response of the financial industry Remarks by Mr Alan Greenspan, Chairman of the Board of Governors of the US Federal Reserve System, at the American Bankers Association’s Virtual Annual Convention (taped statement), 23 October 2001. *  *  *  I am pleased to speak once again to an American Bankers Association convention.