In June 2014, the European Central Bank (ECB) cut the interest rate it pays on excess reserves

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In June 2014, the European Central Bank (ECB) cut the interest rate it pays on excess reserves below zero. What was the rationale for this move and why would banks be willing to pay to keep deposits with the ECB?

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Money Banking and Financial Markets

ISBN: 978-1259746741

5th edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

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Question Posted: Jun 09, 2018 01:31 AM

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In June 2014, the European Central Bank (ECB) cut the interest rate it pays on excess reserves

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The ECB cut the rate in an effort to provide further monetary accommodation The deposit rate ...View the full answer

Money Banking and Financial Markets

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