Perhaps the ECB uses “old macroeconomics”

The ECB’s decisions in the recent period ( amplification of negative interest rates) may be linked to the use of “old” macroeconomic mechanisms that no longer exist in contemporary economies. In the euro zone, contrary to the expectations formed on the basis of these “old” macroeconomic mechanisms, the very low interest rates have : N ot lifted inflation, due to the extent of competition in the goods and services markets; N ot reduced the private savings rate, due to the income effects linked to the low interest rates; N ot lifted investment or productivity, due to the continued high required return on equity and the rise in risk premia on corporate investment; L ed to a depreciation of the e uro, but this has not boosted GDP due to the dominant effect of the deterioration in the terms of trade. The economic mechanisms underpinning monetary policy choices in the euro zone may need to be updated.