“One of the core ideas of central banking is to provide an “elastic currency”, i.e. one in which the important transitory fluctuations in base money demand no longer need to disturb via interest rate effects economic conditions. What matters for the key economic decisions, namely to save or consume, to borrow and invest, are interest rates mainly of medium and longer maturity. With an extreme (and non-white noise) volatility of short-term rates, volatility of longer-term rates will also increase. Such volatility will create noise in economic decisions, and hence lead the economy away from equilibrium. Therefore, a necessary condition for promoting monetary base targeting seems to be that interest rates do not matter at all”

https://www.ecb.europa.eu/pub/pdf/scpwps...277c4d55a4