As Steve noted, we already have $7 billion in required clearing balances with a rate of remuneration that’s only 80 percent of the T-bill rate. So in all likelihood, we would have a positive number. How large that number would be is the question mark.

The determination of voluntary targets, as Spence mentioned, is a really big issue that we’d have to study much further. At least in the context of the simple models, banks will face some probability of an overdraft charge if they are operating with very low balances, so they might ...

Thanks, Steve. As noted on page 25, the Interest on Reserves Workgroup developed a set of options for monetary policy implementation in the United States based on alternative settings for a small set of core structural elements. The first core element—so-called balance targets—is a central feature of many ...