Economics at your fingertips  

Assessing the Macroeconomic Effects of LTROs during the Great Recession

Christophe Cahn (), Julien Matheron () and Jean-Guillaume Sahuc ()

Journal of Money, Credit and Banking, 2017, vol. 49, issue 7, 1443-1482

Abstract: In response to the 2008–2009 crisis, faced with distressed financial intermediaries, the European Central Bank (ECB) embarked in longer term refinancing operations (LTROs) with full allotment. Using an estimated DSGE model with a frictional banking sector, we find that such liquidity injections have played a key role in averting a major credit crunch. A counterfactual analysis suggests that, absent these nonconventional measures, output, consumption, investment, and the GDP deflator would have been 2.5%, 0.5%, 9.7%, and 0.5% lower on average over 2009, respectively.

Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16) Track citations by RSS feed

Downloads: (external link)

Related works:
Working Paper: Assessing the Macroeconomic Effects of LTROs During the Great Recession (2017)
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:

Access Statistics for this article

Journal of Money, Credit and Banking is currently edited by Robert deYoung, Paul Evans, Pok-Sang Lam and Kenneth D. West

More articles in Journal of Money, Credit and Banking from Blackwell Publishing
Bibliographic data for series maintained by Wiley Content Delivery ().

Page updated 2022-01-28
Handle: RePEc:wly:jmoncb:v:49:y:2017:i:7:p:1443-1482