This IOER rate was meant, not thought, meant to put a floor under EFF that the FOMC could then control. It never worked. The reason it continuously failed was simple – central bankers don’t understand the modern monetary market. Their biggest blindspots were and remain offshore vs. onshore dollars as well as dollar vs. “dollar.” These are not trivial distinctions.
……The QE regime rather further established beyond all doubts what was proposed and proved during the crisis. There is no money in monetary policy; global money resides, and behaves, elsewhere.