Yu: Too Early to Say Negative Rates Have Failed

The video discusses Japan's negative interest rates and the broader context of its monetary policy over decades. It explores the impact of central bank policies on market psychology and the challenges to traditional economic theories. The discussion also covers the reevaluation of growth assumptions and the complexities of maintaining transparency in data-dependent environments.

What is a key concern regarding Japan's monetary policy experiment over the last three decades?

• It has been universally successful.

• It is too early to determine its success.

• It has completely failed.

• It has led to hyperinflation.

Why is it important for central bankers to maintain confidence in their policies?

• To reduce government debt.

• To ensure market confidence.

• To increase inflation rates.

• To decrease unemployment.

What is a potential downside of being data-dependent in monetary policy?

• It makes forecasting difficult.

• It stabilizes market volatility.

• It reduces the need for forward guidance.

• It increases transparency.

What challenge does Ballard present to traditional economic assumptions?

• That trend growth is higher than expected.

• That trend growth is lower than expected.

• That trend growth remains unchanged.

• That trend growth is irrelevant.

What did Carney's successor at the Bank of Canada do regarding forward guidance?

• He reinforced it.

• He expanded it.

• He eliminated it.

• He ignored it.