But volumes will fall because corporate customers will no longer need to hold accounts in several currencies, and banks will no longer be able to use the moneymarket to profit from interest-rate differentials between euro-zone currencies.
In fact, the existence of LSAs and RSAs will create pressure to make all investment income and gains tax free, just as moneymarket funds in the mid-1970s ended Washington's long-standing interest-rate controls for bank deposits.
They - just like Mr. Weller said, they're really getting into a lot of different types of loans to make the cost of money, i.e. interestrate, more favorable for them on the entering into the market.
My point here is that open market purchases and the associated expansion of money growth rate are accepted as normal or routine Fed policy so long as interest rates have some room to decline in the process.