Richard Holden has consistently argued for lower interest rates, so it is not surprising that he disagrees with the case I made: that monetary policy should begin the journey towards normality. But on the substance of macroeconomic policy more generally, there seems to be a fair measure of agreement.

Yes, the world has changed, and private investment has lost its mojo since 2008. The financial crisis upset balance sheets and the fiscal austerity after 2010 was a bad policy mistake. Demography and other factors are pushing down the “neutral” interest rate – the rate that would be consistent with the economy operating in full-employment equilibrium. Secular stagnation seems a real prospect.