The QE Program and the Target balances

Hans-Werner Sinn

Chapter Chapter 8 in The Economics of Target Balances, 2020, pp 53-60 from Springer

Abstract: Abstract The ECB’s QE program carried out during the years 2015 to 2018, which increased the Eurozone’s stock of central bank money from 1.2 trillion to 3.2 trillion euros, involved a purchase of public sector bonds worth 2.1 billion euros in the Public Sector Purchasing Programme. The program effectively rescheduled the external public debt of countries like Italy and Spain by replacing securitized government debt in the hands of international private investors with mere Target debt of their respective NCBs. As the sellers typically used the sales proceeds to reinvest them in Germany, Germany’s Target balances increased strongly despite the symmetry of the NCB’s purchases.

Keywords: Central bank money; Government bonds; Asset Purchase Programme; PSPP; Debt restructuring (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-030-50170-9_8

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DOI: 10.1007/978-3-030-50170-9_8

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