Possible Impact of the ECB’s Outright Purchase Programmes on Economic Growth from Individual Eurozone Countries’ Point of View

Mária Širaňová and Jana Kotlebova
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Jana Kotlebova: University of Economics in Bratislava, Slovakia

from University of Primorska, Faculty of Management Koper

Abstract: The third wave of ECB’s quantitative easing aims to, among others, support impaired credit provisioning by banking system to real economy. This paper we examine relationship between credit provisioning and economic output in EA member states with ARDL bound test estimated by OLS. Contrary to most of the recent studies we test significance of causal relationship running from credit to domestic output on individual country levels and not for the entire euro area. Our results suggest that in most of the member states the economic growth precedes credit provisioning, a fact that might hinder efforts to support economic recovery through banking channel. In the post-2008 period only four countries show signs of positive impact of increase in bank credit on economic output, namely Austria, France, Germany and Malta.

Keywords: bank credit; quantitative easing; ARDL (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:mgt:micp15:195-207

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