The answer is that times are by no means normal now, and the simple rules that perform well under ordinary circumstances just won’t perform well with persistently strong headwinds restraining recovery and with the federal funds rate constrained by the zero bound. A further simulation serves to illustrate that such rules would perform relatively poorly at the current time.
The counterpart of frontloaded euro banknotes and coins will be debited to banks gradually in the course of January 2002, so as to help them deal with the costs of frontloading and supplying.