What Does It Take? Quantifying Cross-Country Transfers in the Eurozone

YiLi Chien, Zhengyang Jiang, Matteo Leombroni and Hanno Lustig

No 34311, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We compute the cross-country transfers that result from unconventional monetary policy in the Eurozone. The ECB funds the expansion of its aggregate balance sheet mostly by issuing bank reserves and cash in core countries. The national central banks (NCBs) in periphery countries then borrow from the core NCBs at below-market rates to fund the asset purchases and bank lending. In addition, NCBs in the periphery lend more to their own banks at below-market rates. To compute the cross-country transfers, we compare the resulting cross-country distribution of NCB income to a counterfactual scenario without the ECB and without non-marketable intra-Eurozone debt. We document significant and persistent transfers from the core to the periphery.

JEL-codes: E42 E52 F33 G15 (search for similar items in EconPapers)
Date: 2025-10
Note: AP EFG IFM ME
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.nber.org/papers/w34311.pdf (application/pdf)
Access to the full text is generally limited to series subscribers, however if the top level domain of the client browser is in a developing country or transition economy free access is provided. More information about subscriptions and free access is available at http://www.nber.org/wwphelp.html. Free access is also available to older working papers.

Related works:
Working Paper: What Does It Take? Quantifying Cross-Country Transfers in the Eurozone (2025)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:34311

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w34311
The price is Paper copy available by mail.

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().