Hirschman, A (1964), ‘The Paternity of an Index’, American Economic Review, Vol. 54, No. 5, pp. 761. Imrohoroğlu, A and Tüzel, Ş (2014), ‘Firm-Level Productivity, Risk, and Return’, Management Science, Vol. 60, No 8, pp. 1861-2109. Jones, C and Philippon, T (2016), ‘The secular stagnation of investment?’, mimeo. Kapetanios, G, Masolo, R, Petrova, K and Waldron, M (2017), ‘A time varying parameter structural model of the UK economy’, Bank of England Staff Working Paper, No. 677. Kashyap, A, Stein, J, Wilcox (1993), ‘Monetary Policy and Credit Conditions: Evidence from the Composition of External Finance’, American Economic Review, Vol. 83, No. 1, pp. 78-98. Katz, L and Krueger, A (2017), ‘The Role of Unemployment in the Rise in Alternative Work Arrangements’, American Economic Review: Papers & Proceedings, Vol. 107, No. 5, pp. 388-392. Kiley, M and Roberts, J (2017), ‘Monetary Policy in a Low Interest Rate World’, Brookings Papers on Economic Activity, Spring 2017, pp. 317-396. Kuttner, K and Robinson, T (2010), ‘Understanding the flattening Phillips curve’, North American Journal of Economics and Finance, Vol. 21, No. 2, pp. 110-125. Laubach, T and Williams, J (2003), ‘Measuring the Natural Rate of Interest’, Review of Economics and Statistics, Vol. 85, No. 4, pp. 1063-1070. Monetary Policy Committee (2018), ‘The equilibrium interest rate’, in Inflation Report, Bank of England, August. Mongey, S (2018), ‘Market Structure and Monetary Non-Neutrality’, mimeo. 22  All speeches are available online at www.bankofengland.co.uk/speeches  22  Rogoff, K (1985), ‘The Optimal Degree of Commitment to an Intermediate Monetary Target’, Quarterly Journal of Economics, Vol.

Thereafter, supported by our substantial monetary stimulus and the projected evolution of energy prices and economic developments more generally, euro area inflation rates should recover further. In the current context, it is crucial for the ECB to ensure that the very low inflation environment does not become entrenched in second-round effects on wage and price-setting. Our monetary policy continues to aim at safeguarding price stability in fulfilment of our mandate. While the monetary policy measures taken since June 2014 have helped supporting the euro area’s economic recovery and fighting too low inflation, new shocks that emerged during the course of last year prompted a measurable downgrade of the inflation outlook. Hence, in March 2016 the ECB’s Governing Council decided on a comprehensive package of measures that complement and reinforce each other and thereby strengthen the monetary policy impulse. The package combines a further broad-based easing of financial conditions through a further reduction in the ECB’s key policy rates and the expansion of our asset purchase programme, with other measures, notably four new targeted longer-term refinancing operations (TLTRO II) that will reinforce the transmission of our monetary policy  BIS central bankers’ speeches  1  stance to the borrowing conditions of firms and households. The TLTRO II operations will enable banks to borrow liquidity for a period of four years at a rate that can be as low as the rate on the deposit facility – currently –0.40% – in case these banks increase their lending beyond a certain benchmark.