 The impact of the ECB’s monetary policy measures taken in response to the COVID-19 crisisJohn Hutchinson and Simon Mee Economic Bulletin Boxes, 2020, vol. 5 Abstract: This box examines the impact of the ECB’s monetary policy measures taken in response to the coronavirus (COVID-19) crisis, focusing on asset purchases and the targeted longer-term refinancing operations (TLTRO III). It outlines how the ECB’s response centred on addressing three key issues: (i) market stabilisation, (ii) providing central bank liquidity to maintain credit provision to the real economy, and (iii) ensuring that the overall monetary policy stance is sufficiently accommodative. The box sets out in detail how the ECB’s measures have indeed proved an effective and efficient response to the COVID-19 crisis, in turn providing crucial support to the real economy and to price stability across two dimensions, namely underpinning the medium-term growth and inflation outlook and removing tail risks around the baseline outlook. These measures are a proportionate response under current conditions given that the ECB’s price stability objective would have been subject to further downside risks in the absence of such measures. JEL Classification: E50, E52, E58 Keywords: COVID-19 crisis; Monetary policy; non-standard monetary policy measures (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:ecb:ecbbox:2020:0005:3 Access Statistics for this article More articles in Economic Bulletin Boxes from European Central Bank 60640 Frankfurt am Main, Germany. Contact information at EDIRC. |
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