 ECB's asset purchase programmes and changes in international investment positions of euro area countries between end-2014 and end-2016Anton Jevcak and Gerda Symens Quarterly Report on the Euro Area (QREA), 2018, vol. 16, issue 3, 69-73 Abstract: This section looks closer at changes in the sectoral composition of gross foreign assets and liabilities which accompanied massive injections of central bank liquidity through the ECB's expanded asset purchase programme between end-2014 and end-2016. It focuses in particular on eight euro-area countries where flows of central bank reserves induced the largest changes in external positions of their national central banks. It shows that portfolio rebalancing towards foreign financial assets by the private non-banking sector in the main TARGET2 debtor countries has likely contributed to the recent divergence in TARGET2 balances. This divergence might have also reflected repayments of gross foreign liabilities by their banking sector (excluding NCBs). In other words, the private sector in the main TARGET2 debtor countries seems to have taken the opportunity offered by the increased provision of liquidity by the Eurosystem to improve its NIIP. This should make it more resilient to a possible future tightening of global financing conditions. Keywords: monetary policy; economic resilience; central bank reserves; external positions; TARGET2 (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:euf:qreuro:0163-05 Access Statistics for this article More articles in Quarterly Report on the Euro Area (QREA) from Directorate General Economic and Financial Affairs (DG ECFIN), European Commission Contact information at EDIRC. |
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