Effectiveness and Transmission of the ECB's Balance Sheet Policies
Jef Boeckx (),
Maarten Dossche () and
Gert Peersman ()
International Journal of Central Banking, 2017, vol. 13, issue 1, 297-333
We estimate the effects of exogenous innovations to the balance sheet of the ECB since the start of the financial crisis within a structural VAR framework. An expansionary balance sheet shock stimulates bank lending, reduces interest rate spreads, leads to a depreciation of the euro, and has a positive impact on economic activity and inflation. A counterfactual analysis reveals that the macroeconomic consequences of the balance sheet policies in the aftermath of the crisis have been substantial. For example, euro-area output and inflation would have been more than 1 percent lower in 2012 without the threeyear LTRO programs. Finally, we find that the effects on output turn out to be smaller in the member countries that have been more affected by the financial crisis, in particular those countries where the banking system is less well capitalized.
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (38) Track citations by RSS feed
Downloads: (external link)
Working Paper: Effectiveness and Transmission of the ECB's Balance Sheet Policies (2014)
Working Paper: Effectiveness and transmission of the ECB’s balance sheet policies (2014)
Working Paper: Effectiveness and Transmission of the ECB’s Balance Sheet Policies (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ijc:ijcjou:y:2017:q:0:a:8
Access Statistics for this article
International Journal of Central Banking is currently edited by Loretta J. Mester
More articles in International Journal of Central Banking from International Journal of Central Banking
Bibliographic data for series maintained by Bank for International Settlements ().