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The authors thank Kelly Eckhold, Olivier Gloede, Simon Gray, Karolis Liaudinskas, Steven Philips, Jean-Louis Schirmann, Nick Solonar, and Miklos Vari for their very useful comments. All remaining errors and omissions are ours. Shaoyu Guo ended his appointment with the IMF in January 2018.
Autonomous factors create neither a need for refinancing nor excess reserves.
General documentation on the Eurosystem operations can be found on the ECB website: https://www.ecb.europa.eu/ecb/legal/1002/1014/html/index-tabs.en.html.
EONIA is the volume-weighted average rate of overnight, unsecured interbank lending reported daily by a panel of the main market participants in the overnight market in the euro area. It is used as an indication of short-term rates in the euro area and is the implicit operational target of the ECB (Bindseil 2017).
The very long-term operation is a 3-year, fixed-rate, and full allotment operation decided by the ECB Governing Council on 8 December 2011 and allotted on 21 December 2011 for a total amount of EUR 489 billion. A second 3-year operation allotted on 29 February 2012 provided additional EUR 529 billion.