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A critique of the ECB's liquidity policies | 66 comments (66 topical, editorial, 0 hidden)
Re: The EONIA heartbeat (4.00 / 2)
Pretty clear. The deposit-MLF band was brought down swiftly in early 2009 to its current level which started in May, 2009. EONIA was stabilised (with moderate spikes on the cusp of one maintenance period to the next). Then, soon after the beginning of bond purchases, EONIA becomes much more volatile, trending upwards.

The sign there is something else at work since mid-2010 is that the deposit-MLF band has not changed. "Something else" could be sterilisation, or possibly aliens learning to use a Wii.

by afew (afew(a in a circle)eurotrib_dot_com) on Thu Feb 24th, 2011 at 04:25:58 PM EST
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A critique of the ECB's liquidity policies | 66 comments (66 topical, 0 editorial, 0 hidden)
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