No, it is that they know the balance sheet. They know it by late in the day with certainty. They have few sources of uncertainty to begin with, and their major source of uncertainty, government balances, is something that perhaps the small number of banks they’re dealing with facilitates ...

I would say, as a general characterization, that the common practice is to intervene only once a day, in the morning—not unlike what we do. Where there’s an exception, it’s like with the Bank of Canada. They have access to information that would allow them to know ...

We are finding a great reluctance to do intraday arbitrage. We’re hearing this from the banks that in the past would do that from time to time. Coming back to one of the other questions that Don had about what we are hearing about stigma from some of the ...

Well, for a lot of what we seem to get—like the Eurodollar rates and LIBOR and foreign exchange swaps and the way they relate to what goes on in our overnight funds market—the typical intraday pattern is firm in the morning and coming off late in the day ...

That’s our impression, that it doesn’t have macro consequences. Maybe it’s a tempest in a teapot, but for the participants in that market, the uncertainty and the costs that are borne by borrowers and lenders are an important issue. But the macro fallout, the effect on longer- ...

Well, for the Bank of England, the way the voluntary target rules are set is really very simple. The bank chooses its own voluntary target. It can’t be below zero, of course, but they have a cap. It can’t be any higher than a certain amount, and I ...

Thank you, Jim. We have identified four critical objectives for a new operating framework, which are listed on page 34 of your handout. These are (1) to reduce burdens and deadweight loss associated with the current regime, (2) to enhance monetary policy implementation, (3) to promote efficient and resilient money ...

As Sandy described, one way to structure a temporary term auction facility would be to hold regular auctions of twenty-eight-day term loans, for a period of approximately six months. If one auction were held every two weeks, then there would be two overlapping sets of loans outstanding at any one ...

We have thought of different ways that the ability to pay interest on reserves could be used, and you’re making a distinction between a rate that might be paid on excess and a rate that might be paid on required. Maybe they’d be the same; maybe they would ...

No, I think that adapting to that environment would not be a problem for us. It would probably be very easy to do.