Speaking at Yale

  • ECB measures, including the deposit rate at its current negative level is proving to be effective in lifting inflation

  • It's difficult to know how long these low interest rates will persist but it seems possible that they will be low for quite some time

  • Central bankers should be mindful of a potential economic lower bound at which the detrimental effects of low rates on the banking sector outweigh their benefits

Nearly every central banker is worried about rates staying too low for too long yet no one has ever put a timeline on the "too long" part.