But in the current situation,
where nominal interest rates are constrained because they can't go below zero, a small increase in expected inflation could be helpful.
While there are some signs of recognition such as the Fed's reduction in its estimated neutral
rate from 4.5 percent to 3.0 percent during the last 2 years, the IMF's explicit use of the term secular stagnation in its World Economic Outlook, ECB president Mario Draghi's call for global coordination and greater use of fiscal policy, and Japan's indicated
interest in fiscal - monetary cooperation, policymakers still have not made sufficiently radical adjustments in their world view to reflect this new reality of a world
where generating adequate
nominal GDP growth is likely to be the primary macroeconomic policy challenge for the next decade.