notices - See details
Notices
AE
daan everts (not verified)
11th February 2014 | 5:46pm

Thanks for this article. Why has it become acceptable in the first place to have the effective rate stray so far from target (ever since Lehman)? And if the reverse repo is supposed to make sure that discrepancy does not increase when target rates rise, why not set the repo floor equal to current target rate to test this method?