iM : interest rate on base money held for one period. iN : interest rate on currency (notes and coins) held for one period. iD : one − period interest rate on bank reserves (deposits) held with the central bank. iB : one − period interest rate on collateralised commercial bank ...
Professor Michael Woodford
Setting its deposit facility rate modestly below zero represented unchartered territory as the ECB was the first major central bank to enter on this course, writing monetary history as it proceeded. Afterwards, the large-scale asset purchases shifted down and flattened the yield curve, leading to ...