Speech by at the Symposium on “Central Banking in Central and Eastern Europe: Policy Making, Investment and Low Yields”, organized by the Czech National Bank and OMFIF (Official Monetary and Financial Institutions Forum), Prague, 10 June 2016. 14
Moreover, employing this mitigator for a prolonged time comes with costs, as it reduces incentives to lessen excess debt and causes delays in balance-sheet repair, which ultimately is necessary for economic recovery. Needless to say, the effect of low interest rates is extended to those economic entities that have not suffered any damage to their balance sheets.