The established fed funds rate target had been 0–0.25 %, with IOER set at 0.25 per cent. Into the lack of economic market frictions, concept informs us that the fed funds price must have been pegged at 0.25 % by IOER. But, over period, given funds typically exchanged at from 10 to 20 foundation points below IOER. Demonstrably, a floor system failed to work with the usa as, for example, Goodfriend anticipated. Continue reading »
Mai 212021