This could disanchor expectations and increase the probability of the worst-case scenario materialising. To sum up, cutting rates to zero, or to a level below what would be justified by the underlying fundamentals can lead to substantial problems. Overall, policy-makers have to balance type I and type II errors, and their potential implications.
I am pleased to be a part of this conversation among the private and public sectors, as well as the education community, about how best to empower students with the confidence and savvy to navigate their financial worlds. 2  BIS Review 45/2010