In particular, central bankers generally consider these supply-side forces as beyond the direct influence of monetary policy, which limits the effectiveness of monetary interventions. This is why central banks typically look through commodity price increases in a transitory supply shock episode.
Let me expound the merits and drawbacks of the discussed system, again upon the premise that I do not have a quantitative scale to weigh the ones against the others. •  First advantage: the volatility of the overnight rate would likely be squeezed to minuscule numbers.