Taking into account the actual role of the interest rate on reserves, the Federal Reserve has proceeded with the normalization of monetary policy by providing a new means of absorbing funds, namely reverse repos, which forms a floor on the federal funds rate. Here, new practices have been created to raise interest rates with abundant liquidity in the financial system.
In commemorating Tommaso and his legacy, the ESRB deserves a particular mention because the reform of Europe’s supervisory architecture was, like the single currency, one of his more profoundly held professional concerns. Indeed, Europe has been confronted with the problem of asymmetry between economic development and institutional response also in the area of financial markets.