Central banking with flexible corridor

The IOER Debate Redux

Central banking economists are debating the IOER, and I think the ten years of debate  reveals the title of the post.  IOER has to be set separately from Interest On Excess Loans, IOEL.  IOEL don't exist as a separate control. 

There  are two independent queues, the central banker needs a bit error process.

This is not really new science because the market making function always existed and requires the exchange take some risk.  So it is not unreasonable to expect the central banker to act a bit like market maker, it is bridging the bid/ask queues.