While the formal decision of the ECB Council to impose interest on Target claims and liabilities is meaningless, this … paper shows that the pooling of primary interest income among national central banks in the Eurozone implies that Target and … cash balances do, in fact, bear an effective rate of interest. The magnitude of this effective rate of interest is given by …

expectations. In the case of interest rates, as the standard policy rate approached the effective lower bound, major central banks … began providing forward guidance (FG) on interest rates with the intention of lowering expectations of future short …

economy, market concentration increases (declines). This effect is more pronounced when interest rates have been low …