The rotation from the asset purchase programme to forward guidance on rates At our June monetary policy meeting, we initiated a rotation of our policy instruments from the asset purchase programme (APP) towards more conventional instruments of monetary policy – the policy interest rates and forward guidance on their likely future evolution.
To take the most prominent example, the wealth effect is the most important reason why the personal saving rate in the United States has fallen from roughly 8 percent in 1990 to -1 percent in the first quarter of this year.