Global financial cycle and eurozone’s financial stress: quantitative easing matters

Costas Karfakis () and Ioannis Karfakis ()
Additional contact information
Costas Karfakis: University of Macedonia
Ioannis Karfakis: University of Hertfordshire

Journal of Economics and Finance, 2025, vol. 49, issue 1, No 9, 224 pages

Abstract: Abstract This paper examines whether the expanded Quantitative Easing policies of the European Central Bank during the period 2015–2022 have influenced the impact of the Global Financial Cycle (GFC) on the Eurozone’s financial stress. The threshold regression reveals that these policies’ implementation has reduced the impact of GFC on financial stress in the post-2015 period, and thus contributed to lower systemic risk. The impulse responses of the quantile regression show that a global risk aversion shock does not have persistent effects on the financial stress distribution, and thus the GFC would not “set the tone” of the Eurozone’s financial conditions.

Keywords: Quantitative easing; Financial stress; Global financial cycle; Systemic risk; Threshold regression; Quantile regression analysis (search for similar items in EconPapers)
JEL-codes: E52 E58 G15 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s12197-024-09697-4 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
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:spr:jecfin:v:49:y:2025:i:1:d:10.1007_s12197-024-09697-4

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/12197/PS2

DOI: 10.1007/s12197-024-09697-4

Access Statistics for this article

Journal of Economics and Finance is currently edited by James Payne

More articles in Journal of Economics and Finance from Springer, Academy of Economics and Finance Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().