More recently, critics have argued that QE, together with negative interest rates, is no longer effective in either Japan or in the euro zone. That case has not yet been empirically established, and I believe that central banks still have the capacity through QE and other measures to run expansionary monetary policies, even at the zero lower bound. 4.
Let me now come to a related issue which is being debated by the standard setting bodies. You might have already read in the newspapers a couple of days back about the proposals being set out by the Financial Stability Board (FSB) to lay down a new minimum standard for “total loss-absorbing capacity” (TLAC) for the G-SIBs.