The Current Policies of the ECB

Mike Tsionas

Chapter Chapter 16 in The Euro and International Financial Stability, 2014, pp 89-97 from Springer

Abstract: Abstract Following its announcement of lower interest rates, the ECB decided to lend 489 million euros to selected European banks at the low rate of 1 % (December 21, 2011). This amounts to an increase in money supply by a significant amount and a further lowering of interest rates, at least for certain European banks and the projects that will be financed. What will be the likely effects of this policy action? According to the analysis of the Austrian school, the effect depends on how the monetary expansion will be distributed among consumption and production and also among the various branches of production and the various branches of consumption.

Keywords: Interest Rate; Commercial Bank; Banking Sector; Credit Market; Relative Prex (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:spr:fimchp:978-3-319-01171-4_16

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DOI: 10.1007/978-3-319-01171-4_16

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