Effects of central banks controlling nominal interest rates

Central banks (we look at the Federal Reserve, the Bank of England, the ECB and the Bank of Japan) can be considered as controlling nominal interest rates at all maturities, through the choice of short-term interest rates, forward guidance and quantitative easing. The fact that nominal interest rates are controlled has significant consequences: A rise in inflation drives down real interest rates, leading to declining debt ratios and rising asset prices; The question of neo-Fisherism (i.e. a causality going from nominal interest rates to inflation in the long term) therefore arises. According to neo-Fisherism, keeping nominal interest rates low for a long time leads to persistently low inflation.