“When [consumers] shift their income stream from purchases to saving, it slows GDP, and that's a long-term process. I think interest rates are going to remain very low for a couple of years.”
“To have an effective monetary policy, you have to have a robust borrowing and lending cycle. The problem is that households and businesses are both overextended, while banks have problems with their current loan base. So we don't have a viable borrowing and lending cycle, which means that monetary policy is not working effectively.”
