Fragmentation and Monetary Policy in the Euro Area

Al-Eyd, Ali; Berkmen, Pelin

doi:10.5089/9781484328750.001

Cited by 44 publications

(28 citation statements)

References 4 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The latter observation stands for a quite expansionary monetary policy impulse coming from the ECB. However, several studies show that the transmission channel of monetary policy is hindered due to the unwillingness of private institutions to lend money (see Al-Eyd and Berkmen (2013) as well as Ciccarelli et al (2013) among others). In particular, Bouis et al (2013) conclude from empirical observations for several OECD countries (including the Euro Area) that credit growth is subdued due to considerable balance sheet adjustments of financial companies.…”

Section: Macroeconomic Development In Spainmentioning

confidence: 99%

On the Efficiency of Labor Market Reforms: How to Solve the Spanish Puzzle?

Sacht

2015

Economics

View full text Add to dashboard Cite

In this paper the author sheds light on the relationship between labor market policy, entrepreneurship and youth unemployment prior to and in the aftermath of the global financial crisis in Spain. He discusses the situation, where labor market and macroeconomic policies were largely inefficient in reducing high levels of (youth) unemployment after 2007. He rises the question why an increase in (youth) unemployment had been observed although the labor market becomes more flexible due to the associated structural reforms in 2010 and 2012. He calls this the Spanish Puzzle. The main reason for this observation can be found in the phenomena of downward nominal rigidity, the existence of a liquidity trap and pessimistic private expectations regarding future economic developments. Given the recovery of the Spanish economy in 2015, this development is grounded on (besides the increase in private consumption and a trade surplus) several policy interventions in order to strengthen entrepreneurial activity in 2013. The corresponding boost in private investment expenditure can be identified as the sustainable main driver for job creation in the long run. JEL E24 E61 J13 L26

show abstract

Section: Macroeconomic Development In Spainmentioning

confidence: 99%

On the Efficiency of Labor Market Reforms: How to Solve the Spanish Puzzle?

Sacht

2015

Economics

View full text Add to dashboard Cite

show abstract

“…Frontloading also causes fluctuations in the EONIA and POLONIA rates on the last days of the maintenance period. The lack of influence of the variable MR_EA during the period of relative stability was probably caused by a reduction in the ECB's reserve ratio from 2 to 1% on 18 January 2012 (Al-Eyd and Berkmen 2013). This greatly reduced the required reserve stock.…”

Section: The Interpretation Of the Results For The Determinants Of Thmentioning

confidence: 99%

Monetary policy in steering the EONIA and POLONIA rates in the Eurosystem and Poland: a comparative analysis

Fiszeder

Pietryka

2017

Empir Econ

View full text Add to dashboard Cite

The effectiveness of the monetary policies of the European Central Bank (ECB) and the Narodowy Bank Polski (NBP) is compared directly in terms of influencing the spread between the interbank overnight rate and the main rates of the central banks during periods of different economic conditions, i.e. the global financial crisis of 2008, the European sovereign debt crisis and the period of relative stability. Three categories of determinants of the Euro Overnight Index Average/Polish Overnight Index Average (EONIA/POLONIA) spreads are considered: (1) monetary policy instruments such as open market operations, standing facilities and minimum reserve requirements; (2) measures of liquidity conditions; and (3) market expectations and risk measures. Applying the ARFIMA-GARCH models, we show that the statistical and economic properties of the EONIA and POLONIA spreads are quite different. The EONIA spread has a long memory while the POLONIA spread is characterized by a short memory. This difference is important from the viewpoint of a stabilizing monetary policy. The impact of shocks on the future levels of the spread was stronger for the POLONIA spread, but it was short-lived in comparison with the EONIA spread. Most of the analysed variables significantly influenced the spreads during the financial crisis, while the biggest differences in the impact of determinants between the EONIA and POLONIA spreads occurred during the period of relative stability. Substantial differences also exist between the volatilities of both spreads.

show abstract

“…In addition, Al-Eyd and Berkmen (2013) considered that euro area financial markets remained fragmented in 2013 and retail interest rates in peripheral countries were far above those in the core. Therefore, fragmentation had prevented the flow of credit and damaged the transmission of monetary policy, and the ECB would have to undertake additional policy measures.…”

Section: Introductionmentioning

confidence: 99%

Determinants of nonresident government debt ownership

Afonso

Silva

2016

Applied Economics Letters

View full text Add to dashboard Cite

We examine the determinants of non-resident government debt ownership, accounting for domestic and external factors and financial variables during the period 2000Q2-2014Q4, focussing on a small euro area open economy: Portugal. Our results show that better fiscal positions, higher systematic stress in Europe, and higher shares of MFI cross-border holdings of public debt, increase the share of non-resident held debt, and rising sovereign yields decrease that ratio.

show abstract

Fragmentation and Monetary Policy in the Euro Area

Cited by 44 publications

References 4 publications

On the Efficiency of Labor Market Reforms: How to Solve the Spanish Puzzle?

On the Efficiency of Labor Market Reforms: How to Solve the Spanish Puzzle?

Monetary policy in steering the EONIA and POLONIA rates in the Eurosystem and Poland: a comparative analysis

Determinants of nonresident government debt ownership

Contact Info

Product

Resources

About