Macroeconomic Effects of Unconventional Monetary Policy in the Euro Area

By G. Peersman. Social Science Research Network, 2011

186 citations recorded by the source corpus.

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.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/5519813f5755025d1f72ddf23f7d6eec91258315

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Citations in the corpus

The ECB’s Non-Standard Monetary Policy Measures: The Role of Institutional Factors and Financial Structure (2012, unknown): “13 See for instance Fahr et al. (2011), Giannone et al. (2011), Lenza et al. (2010) and ECB (2011b).”
The ECB Unconventional Monetary Policies: Have They Lowered Market Borrowing Costs for Banks and Governments? (2012, unknown): “3For the United States see for instance Hamilton & Wu (2012), Krishnamurthy & Vissing-Jorgensen (2011), Szczerbowicz (2011) or Taylor & Williams (2009), for the United Kingdom Joyce et al.”
A Shadow Policy Rate to Calibrate US Monetary Policy at the Zero Lower Bound (2014, unknown): “Notable exceptions are Peersman (2011), Chen et al. (2012, 2016), and Gambacorta, Hofmann, and Peersman (2014), who attempt to pin down unconventional monetary policy shocks in a structural or global VAR framework.”
The effectiveness of unconventional monetary policy at the zero lower bound : a cross-country analysis (2014, background): “3 A few papers go one step further and try to assess the macroeconomic effects of such policies (e.g., Chung et al. 2011, Lenza, Pill, and Reichlin 2011, Joyce, Tong, and Woods 2011, Peersman 2011).”
A Non-Standard Monetary Policy Shock: The ECB’s 3-year LTROs and the Shift in Credit Supply (2015, unknown): “Peersman (2011) and Gambacorta, et al. (2012) instead make use of structural VARs with sign restrictions.1 1Lenza, et al. (2010) identify the non-standard measure shock indirectly assuming that the reduction in the spread between unsecured and secured money market rates observed between November…”
Quantitative Easing and Unconventional Monetary Policy – an Introduction (2012, background): “Other articles by Fahr et al. (2010), Giannone et al. (2011) and Peersman (2011) have also suggested that the ECB’s actions were effective in supporting the euro-area economy.”