The Impact of Unconventional Monetary Policy on Economic Activity: Evidence from Europe

Maciej Bolisega ()
Additional contact information
Maciej Bolisega: Krakow University of Economics

A chapter in Eurasian Business and Economics Perspectives, 2024, pp 373-388 from Springer

Abstract: Abstract The aim of conducted research was to analyze the impact of unconventional monetary policy run by the European Central Bank following global financial crisis. The research comprises period between 2009 and 2021. The main aim in this study was to evaluate the real economic impact, measured by real gross domestic product, in response to change of selected monetary policy parameters. The study used vector error correction model (VECM) and impulse response function (IRF) to simulate economic activity change in the euro area in response to monetary policy shock defined as large scale asset purchase program carried out by the European Central Bank. In order to develop VECM model, the study considered variables illustrating dynamics in economic activity, inflation, polity rates, term spread, exchange rate, and monetary policy measures. The results provided evidence that unconventional monetary policy conducted by the European Central Bank had a positive influence on economic activity in the euro area. The course of the impulse response function described that the impact was rising quarter by quarter and reached the top in the fifth quarter after the shock had taken place. In the following period the impact declined but remained positive through entire simulated period.

Keywords: European Central Bank; Monetary policy; Quantitative easing; Unconventional monetary policy (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:eurchp:978-3-031-55813-9_21

Ordering information: This item can be ordered from
http://www.springer.com/9783031558139

DOI: 10.1007/978-3-031-55813-9_21

Access Statistics for this chapter

More chapters in Eurasian Studies in Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().