Expansionary monetary policy has none of the expected effects

Expectations of what results from an expansionary monetary policy are going to have to be revised considerably: in the euro zone and in the OECD as a whole, expansionary monetary policies have had none of the expected effects. Despite these expansionary monetary policies: Inflation has not risen; Asset prices have not risen sharply; Saving has not been discouraged; Investment has not been stimulated strongly; Lending has not recovered. The expansionary monetary policies’ only effect has been the ir mechanical effect on debt interest payments and receipts. The theoretical models describing the effects of monetary policy must therefore also be changed considerably.