ECB Chief Economist Philip Lane emphasized today that “we don’t think we’re at a limit as of yet” regarding monetary policy. But he also urged “the bigger focus should be rather on what … other policies can contribute to make this limits question less relevant, less interesting because the economy would be growing more quickly.”
Lane added, “Europe needs a big conversation among fiscal policymakers about how to stimulate the economy.” Meanwhile, policy makers “do care about how banks are adjusting to negative interest rates.”
