If aggregate demand depends primarily on the level of long-term interest rates, it might be possible, in principle, to maintain a level of long-term rates consistent with full employment and stable prices by lowering term premiums while at the same time raising the level of short-term rates by a compensating amount.
Klaus Liebscher: Overview of financial services in Austria Speech by Dr Klaus Liebscher, Governor of the Austrian National Bank, at the Global Financial Services Industry 2005 Summit, Vienna, 17 June 2005.