Unconventional Monetary Policy of the ECB during the Financial Crisis: An Assessment and New Evidence

Pattipeilohy, Christiaan; End, Jan Willem van den; Tabbae, Mostafa; Frost, Jon; Haan, Jakob de

doi:10.2139/ssrn.2278838

Cited by 64 publications

(36 citation statements)

References 25 publications

(18 reference statements)

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“…First, our empirical specifications include year-on-year changes in the monetary policy rate as an explanatory variable. Second, we control for unconventional monetary policies by including a variable that measures year-to-year changes in central banks' balance sheet size relative to GDP (see Pattipeilohy et al, 2013).…”

Section: A Methodologymentioning

confidence: 99%

Effective Macroprudential Policy: Cross-Sector Substitution from Price and Quantity Measures

et al. 2016

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Section: A Methodologymentioning

confidence: 99%

Effective Macroprudential Policy: Cross-Sector Substitution from Price and Quantity Measures

et al. 2016

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“…Liquidity support could also reduce the level of short-term rates or spreads in the interbank money market. This reduction of levels or spreads through injections of additional liquidity may have a positive effect on aggregate demand (Joyce, Tong, and Woods 2011;Lenza, Pill, and Reichlin 2010;Pattipeilohy et al 2013).…”

Section: A Policy Options Under the Zlbmentioning

confidence: 99%

Effectiveness of Monetary Policy in Sweden

Moessner

Haan

Jansen

2015

Contemporary Economic Policy

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We study whether the sensitivity of Swedish interest rates to domestic economic news was affected by the zero lower bound (ZLB) and forward guidance. We find that the sensitivity was reduced at the ZLB at short but not at longer maturities, suggesting that monetary policy remained effective at longer horizons. Moreover, it was unaffected during a later period of the ZLB/negative policy rates, suggesting that monetary policy remained effective at all horizons then. We also find that the sensitivity of interest rates to domestic news was unaffected by forward guidance, suggesting that market participants understood the conditionality of the forward guidance. (JEL E52, E58) * We would like to thank an anonymous referee, Birger Vikoren, participants in the DNB Annual Research Conference 2014 on "Forward guidance and communication about unconventional monetary policy" and seminar participants at de Nederlandsche Bank and the Central Bank of the Republic of Turkey for helpful comments, and Agne Subelyte for excellent help with the data.

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“…Different from other studies, the study by Pattipeilohy, et al (2013) focused on the period after the emergence of the sovereign debt crisis. This study analyzed the effectiveness of the Securities Market Programme (SMP) and the extended liquidity provision (LTRO).…”

Section: Literature Reviewmentioning

confidence: 99%

Non-Standard Monetary Policies Implemented By The European Central Bank After The Financial Crisis

Baştürk¹

2017

Öneri Dergisi

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The financial crisis which began in the U.S. in 2007 influenced all economies on a global scale following the collapse of Lehman Brothers in September 2008. As a response to the crisis, central banks started to implement non-standard monetary policy tools as well as short-term interest rates also known as standard policy tools in order to help monetary policy transmission channels work effectively. The European Central Bank (ECB) implemented non-standard monetary policies as in addition to the standard policy tools during this period. The non-standard monetary policies introduced by the ECB were different from those implemented by other central banks (Fed, Bank of England) in terms of implementation and results. Firstly, the policies of the ECB were not specific to one single country. Secondly, the banking system was the major source of finance in Europe, which had an impact on the policies. In this regard, the ECB introduced a policy of enhanced credit support consisting of five main elements in order to maintain price stability over the medium term following the crisis. By 2010, public debt in some member countries of the European Union reached high levels, requiring them to take additional measures. The Securities Markets Programme was introduced to that end. Initially focusing on the debt securities of Greece, Ireland, and Portugal, the Securities Markets Programme was expanded in August 2011 to cover the debt securities of Italy and Spain. In addition, two Long-term Refinancing Operations (LTROs) were introduced. This article presents a descriptive analysis of the non-standard monetary policy tools introduced by the ECB following the financial crisis. However, the monetary policy implemented in the Euro zone is not specific to one single country, and every country has a different financial structure, both of which limit the effectiveness of the policies *

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Unconventional Monetary Policy of the ECB during the Financial Crisis: An Assessment and New Evidence

Cited by 64 publications

References 25 publications

Effective Macroprudential Policy: Cross-Sector Substitution from Price and Quantity Measures

Effective Macroprudential Policy: Cross-Sector Substitution from Price and Quantity Measures

Effectiveness of Monetary Policy in Sweden

Non-Standard Monetary Policies Implemented By The European Central Bank After The Financial Crisis

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