Historically high debt levels and signs of financial imbalances point to an increasing tension between price stability and financial stability.Against the backdrop of divergent monetary policies, the risk of competitive easing should not be underestimated (see also Chapter V).
Another year of exceptionally expansionary monetary policy raises the question of whether existing policy frameworks are fit for their intended purpose.
Make that one, Bernanke has stopped believing this.
most sensible), it’s not very helpful in communication.
For some economies, the strong appreciation of their currencies against the euro and the yen reinforced growing disinflation pressures.
The reduction in policy rates, in a few cases to negative levels, further raised financial vulnerabilities.