Macroeconomic Effects of Unconventional Monetary Policy in the Euro Area

Gert Peersman ()

No 8348, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: I estimate the dynamic effects of respectively traditional interest rate innovations and unconventional monetary policy actions on the Euro area economy. The results show that the Eurosystem can stimulate the economy beyond the policy rate by increasing the size of its balance sheet. The ultimate consequences on output and consumer prices are however more sluggish compared to interest rate innovations. Furthermore, the transmission mechanism via financial institutions - very likely the risk-taking channel - turns out to be different.

Keywords: Unconventional monetary policy; Svars (search for similar items in EconPapers)
JEL-codes: C32 E30 E44 E51 E52 (search for similar items in EconPapers)
Date: 2011-04
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Citations: View citations in EconPapers (181)

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Related works:
Working Paper: The Effectiveness of Unconventional Monetary Policies (2014)
Working Paper: Macroeconomic Effects of Unconventional Monetary Policy in the Euro Area (2011)
Working Paper: Macroeconomic effects of unconventional monetary policy in the euro area (2011)
Working Paper: Macroeconomic Effects of Unconventional Monetary Policy in the Euro Area (2011)
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