Bearing this in mind, it is, moreover, little wonder that euro-area bank lending is still mired in a slump despite the extremely accommodative monetary policy. This state of affairs likewise shows that the expansionary monetary policy is reliant on actions by other agents as well as by policymakers in order for its full effects to materialise.
This explains, for instance, why Japan suffered at least a "lost decade" while the United States overcame the financial crisis very quickly. However, significant strides have been made towards a less fragile banking system in the seven and a half years that have passed since Lehman Brothers collapsed. Misguided incentives were reduced and institutions' resilience has been strengthened.