Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
The ability to set the foundation interest rate is unaffected.

There are essentially two tools Central Banks can use: interest rates, and reserve requirements.

The Fed, BoE etc now find that interest rates have become entirely irrelevant, and this tool has therefore been lost.

Unlike the Chinese, the Fed, BoE etc choose not to use reserve requirements as a policy instrument, and that tool was therefore given up.

"The future is already here -- it's just not very evenly distributed" William Gibson

by ChrisCook (cojockathotmaildotcom) on Tue May 6th, 2008 at 12:30:33 PM EST
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