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What is the effect of lower oxygen levels on the human body?
The immediate effect of lower oil prices is cuts in investments by oil companies.
The Bank, as Carney also said, can look through the effect of lower oil prices on the inflation figures.
Several studies show that the expansionary effect of lower interest rates has often outweighed the contractionary effect of lower government spending.This might not work today.
The comments, made to the Financial Times on Monday, are a sign of increasing panic among producers about the effect of lower oil prices on their economies.
Higher energy taxes and government price controls will reduce the effect of lower oil prices in China, where growth will slow this year and next.
But the effect of lower government spending has been brutal: the economy is expected to contract 3.4% this year after a double-dip recession last year.
A trend to pay higher salaries also offsets the effect of lower bonus payments in City institutions, according to a recent report by recruitment firm Kennedy Associates.
For a real-world example of the effect of lower search costs, think of today's e-reader price wars.
The Fed changed its wording slightly on prospects for growth and acknowledged the effect of lower prices and tame inflation.
At that point, however, the effect of lower interest rates, booming corporate profits and more attractive valuations kicked in.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com