vii The share of high skilled adults in the population in the Netherlands, or in Finland, is more than twice that of France (17% and 19%, respectively, against 8% in France). viii Treasury Department, Annexe au projet de loi de finances pour 2022, Rapport économique, social et financier, October 2021. ix Banque de France monthly business survey. x DARES, Les emplois vacants. xi Unemployment in the ILO sense. xii Unemployment in the ILO sense. xiii Eurostat data for 2005. xiv Eurostat data for 2021. xv DARES, « Tableau de bord des politiques de l’emploi », 2021.
15 The Fed’s FR 2420 data on bank borrowing activity show that after each increase in the ON RRP offering rate, the distribution of fed funds trades shifted toward higher rates, with the vast majority of trades being executed at rates at or above the offering rate (Figure 3). The same patterns were observed in detailed data on brokered fed funds and Eurodollar trades, the latter of which encompasses a larger volume and wider set of lenders than fed funds, and also in secured markets. Examining in particular individual repo trades where money market funds and GSEs supply cash to counterparties over the tri-party platform, we saw repo rates shift higher and nearly all trading volume occur at or above the ON RRP rate. Thus, the rate on the ON RRP facility performed as a floor for nearly all overnight money market transactions, exactly as theory would predict for even small and temporary rate changes in the offering rate. After subsequently lowering the ON RRP offering rate back to its exercise baseline of 5 basis points in mid-December, secured rates declined. Interestingly however, average unsecured rates remained at somewhat elevated levels, even as a portion of the activity returned to lower rate levels (Figures 4 and 5). 16 The drivers of this dynamic remain unclear and illustrate the complexity of money markets, but may partly reflect some lenders in unsecured markets gaining information about their relative bargaining power as a result of the ON RRP tests.