State of the Union: The Financial Crisis and the ECB's Response between 2007 and 2009

The Eurozone in 2012: ‘Whatever It Takes to Preserve the Euro'?

“…Eurozone monetary policy has been cautious in the extreme since the global financial crisis struck. The ECB, it is true, was ahead of the curve in providing emergency liquidity support in August 2007 (see Trichet, ) but the eurozone monetary authority has been much more hesitant than other central banks about cutting interest rates and, when interest rates could not fall much further, embracing so‐called ‘unconventional monetary policies’. Whereas the United States Federal Reserve started cutting interest rates in September 2007 and then launched a full‐scale programme of government bond buying in March 2009, the ECB waited until October 2008 to cut interest rates and until May 2010 to begin buying government bonds.…”

Does the ECB act as a lender of last resort during the subprime lending crisis?: Evidence from monetary policy reaction models

“…The financial turmoil produced by the subprime lending crisis has been the most difficult challenge for the Economic and Monetary Union (EMU) since its inception twelve years ago (Trichet, 2010). The subprime lending crisis, triggered by significant reductions in leverage and prices in the U.S. housing market and intensified by global macroeconomic imbalances, insufficient banking regulation, and fast credit expansion driven by lax monetary policy, has brought many banks in the EMU to the verge of bankruptcy.…”

Assessing time-varying stock market integration in Economic and Monetary Union for normal and crisis periods

“…The crisis period starts from 9 August 2007 (see e.g. Angelini et al 2011;Trichet 2010). 1 The crisis period is split into two sub-periods, that is, the GFC period from 9 August 2007 to 18 October 2009, and the EDC period which is 19 October 2009 onwards (see Ahmad and Sehgal 2014).…”