More specifically, it could lead to the creation of a significantly expanded T+0 funding market. If all of the overnight GC repos currently settled on T+1 shift to T+0, the market size is roughly expected to reach 20 to 30 trillion yen (Chart 8).
Brayton and others (1997) provides an accessible summary of the role and importance of expectations formation in the FRB/US model. 10 The FRB/US model is unfashionable by current academic standards in that it is not a DSGE model.