Download or read book The Interventions of the European Central Bank Throughout the Crisis written by Javier Villar Burke and published by . This book was released on 2017 with total page 21 pages. Available in PDF, EPUB and Kindle. Book excerpt: Throughout the crisis, the ECB implemented a number of unprecedented measures with a wider and wider reach. These measures included a decrease of the policy rate to virtually zero, the extension of the maturities of its liquidity providing operations, an expansion in total liquidity injected in the economy, relaxing collateral requirements, the purchase of government and corporate bonds or allowing net liquidity to grow. This paper reviews and puts into perspective all these measures.The astronomic amounts of liquidity mobilised have put high hopes in the capacity of monetary policy to reactivate the flow of credit to the economy and support the recovery. However, the actual outcome seems not to have matched those high expectations. In this context, this paper also discussed two important constraints limiting the actual capacity of the central bank to impact the economy. 1) assets and liabilities make up an unavoidable accounting identity which implies that any “fresh” liquidity created by the ECB by increasing its assets is simultaneously absorbed or “destroyed” from the liabilities side. 2) The high level of independence of the ECB comes hand in hand with a confinement to a very narrow mandate. Indeed, the questioning of the OMT by the German Constitutional Court explains why the “quantitative easing” of the PSPP is significantly constrained by a mechanical implementation of the capital key. The PSPP has limited flexibility to focus on the most relevant market segments where the monetary transmission appears to be “broken”
Download or read book The European Central Bank written by Hanspeter K. Scheller and published by . This book was released on 2006 with total page 229 pages. Available in PDF, EPUB and Kindle. Book excerpt: Comprehensive 200-page overview of the ECB from its inception in June 1998 until the present day.
Download or read book Monetary Policy in Times of Crisis written by Massimo Rostagno and published by Oxford University Press. This book was released on 2021-06-11 with total page 496 pages. Available in PDF, EPUB and Kindle. Book excerpt: The first twenty years of the European Central Bank (ECB) offer a clear demonstration of how a central bank can navigate macroeconomic insecurity and crisis. As the global economy moves into a new phase of unheralded uncertainty, the story of the ECB holds multiple lessons of wider significance for the central banking community and researchers of monetary policy. This volume provides a unique account of how the ECB has reacted to the challenges confronting the euro area through its monetary policy, turning to innovative measures and unprecedented policy actions to fend off the various threats posed by the global financial turmoil of 2007/08, the euro area sovereign debt market crisis, and the subsequent period of anaemic growth and deflationary pressures. It also addresses some of the criticisms the ECB has faced regarding its policy initiatives. It identifies the ultimate motivation behind the ECB's cautious attitude in the early phases of the financial crisis, and its peculiar definition of price stability and attention for credit creation, as well as addressing the criticism that central banks were fundamentally unprepared to head off a major financial cataclysm as they were wedded to a deficient economic paradigm which made them blind to financial risks. It also shows that the ECB's unconventional low-interest policies have not compromised the position of financial intermediaries in the way commentators initially predicted they would. By condensing the facts and lessons of the first 20 years of the ECB, this volume will acquaint the reader with the structures and decision-making processes behind the complex, often controversial, crisis measures that were taken during some of the toughest economic challenges in the history of modern Europe, and provide them with fresh ex-post analysis on their effect on the real economy and inflation.
Download or read book The European Central Bank written by D. Howarth and published by Springer. This book was released on 2003-05-14 with total page 292 pages. Available in PDF, EPUB and Kindle. Book excerpt: David Howarth and Peter Loedel provide a theoretically inspired account of the creation, design and operation of the European Central Bank. Issues explored include the theoretical approaches to the ECB, the antecedents of European monetary authority, the different national perspectives on central bank independence, the complex organisation of the bank, the issues of accountability and the difficult first years of the ECB in operation.
Download or read book The European Central Bank between the Financial Crisis and Populisms written by Corrado Macchiarelli and published by Springer Nature. This book was released on 2020-08-25 with total page 197 pages. Available in PDF, EPUB and Kindle. Book excerpt: In light of the handover from the European Central Bank President Mario Draghi to Christine Lagarde in November 2019, this book provides an in-depth analysis of the events which unfolded since the euro area sovereign debt crisis in 2010 up until today. The book focuses on the far-reaching implications of the last decade, shedding light on a wide spectrum of political, economic and financial aspects of the European poly-crises and how monetary policy reacted to these challenges. The book places particular emphasis on the tensions that the supranational central bank was subject to during this period, and on their outcomes in terms of the policies, their legitimacy, and their public reception. As such, this book will be relevant not only to understand the political implications of the past crisis but also, and foremost, in understanding "what is next".
Download or read book Financial Crisis written by James K. Jackson and published by DIANE Publishing. This book was released on 2010 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: Contents: (1) Overview: Financial Architecture; Economic Performance; (2) The Financial Crisis and the European Union; (3) Phase I ¿ Build-up; (4) Phase II ¿ Liquidity Issues: Central Bank Operations; Interest Rates; Currency Swap Facilities; Depositor Guarantees; (5) Phase III ¿ Solvency and Deleveraging: The ¿European Framework for Action¿; ¿Bad Banks¿; (6) Phase IV ¿ Fiscal Intervention; European Economic Recovery Plan; Germany; France; United Kingdom; (7) Outlook. Charts and tables.
Download or read book Financial Regulation in the European Union After the Crisis written by Domenica Tropeano and published by Routledge. This book was released on 2018-01-12 with total page 174 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the wake of the financial crisis, new regulatory measures were introduced which, along with changes in monetary and macroeconomic policy, have transformed the global financial structure. However, this new financial structure displays various fragilities. A new shadow banking system has grown both inside and outside the traditional banks and the divergence between core and periphery countries’ banks has increased further due to both the new regulations and the European Central Bank’s very peculiar interventions. Following Minsky’s approach, this volume explores the interplay between monetary policy, regulation and institutions in the aftermath of the great financial crisis. Minsky’s insights are used to interpret the recent regulatory changes and consider how they have affected the evolution of banks and financial markets. The unfortunate conclusion is that the changes in financial regulation introduced in various jurisdictions and inspired by the work of the Basel Committee, have not succeeded in thwarting the instability of the economic system. Instead, the mix of policies implemented so far has brought about increased fragility in the financial system. Minksy’s work on financial stability offers alternative solutions which policy-makers need to consider to resolve these issues. Financial Regulation in the European Union After the Crisis is an important volume for those who study political economy, banking and monetary economics.
Download or read book Open Issues in European Central Banking written by L. Smaghi and published by Springer. This book was released on 2000-01-04 with total page 218 pages. Available in PDF, EPUB and Kindle. Book excerpt: With the start of EMU, the Eurosystem has taken over monetary policy for the 11 countries of the Euro-area. But the division of powers within the Eurosystem, between the European Central Bank and the constituent National Central Banks, is not satisfactory. This volume provides an analysis of the strengths and weaknesses of the Eurosystem and offers concrete proposals concerning the decision-making organs, balance sheets and the distribution of seigniorage.
Download or read book European Central Bank Monetary Policy The View of the Sovereign Debt Crisis written by Felix Lesch and published by GRIN Verlag. This book was released on 2021-05-21 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: Studienarbeit aus dem Jahr 2020 im Fachbereich BWL - Bank, Börse, Versicherung, Note: 1,0, FOM Essen, Hochschule für Oekonomie & Management gemeinnützige GmbH, Hochschulleitung Essen früher Fachhochschule, Sprache: Deutsch, Abstract: This paper is about the European Central Bank Monetary Policy and the View of the Sovereign Debt Crisis. „Whatever it takes“– three simple but effective words had the desired effect and calmed the government bond markets in the summer of 2012, whose developments in the wake of the European sovereign debt crisis had led to immense financing difficulties for some member states of the euro area. Even more, the statement by Mario Draghi, then president of the European Central Bank (ECB), underlined the determination with which the ECB is willing to prevent a possible break up of the euro area. The measures taken by the ECB have included interest rate cuts, negative interest rates and purchase programmes of various assets. However, the ECB's measures did not meet with the exclusive approval of experts, they sometimes caused harsh public criticism and even the judiciary, in form of the Bundesverfassungsgericht (German Federal Constitutional Court) and the European Court of Justice (ECJ), had to address the issue. Against this background, this assignment aims to examine whether the monetary policy of the ECB infringes Article 123 (1) Treaty on the Functioning of the European Union (TFEU) which states the prohibition on monetary financing of member state budgets. To begin with, the origins of the European sovereign debt crisis are explained. The paper then outlines selected non-standard monetary policy measures taken by the ECB to mitigate the effects of the crisis, in form of Outright Money Transactions (OMTs) and the Public Sector Purchase Programme (PSPP). The fourth chapter focuses on the PSPP and analyses the programme against the background of Article 123(1) TFEU.
Download or read book The Oxford Handbook of the Economics of Central Banking written by David G. Mayes and published by Oxford University Press. This book was released on 2019-02-15 with total page 809 pages. Available in PDF, EPUB and Kindle. Book excerpt: The economic influence of central banks has received ever more attention given their centrality during the financial crises that led to the Great Recession, strains in the European Union, and the challenges to the Euro. The Oxford Handbook of the Economics of Central Banking reflects the state of the art in the theory and practice and covers a wide range of topics that will provide insight to students, scholars, and practitioners. As an up to date reference of the current and potential challenges faced by central banks in the conduct of monetary policy and in the search for the maintenance of financial system stability, this Oxford Handbook covers a wide range of essential issues. The first section provides insights into central bank governance, the differing degrees of central bank independence, and the internal dynamics of their decision making. The next section focuses on questions of whether central banks can ameliorate fiscal burdens, various strategies to affect monetary policy, and how the global financial crisis affected the relationship between the traditional focus on inflation targeting and unconventional policy instruments such as quantitative easing (QE), foreign exchange market interventions, negative interest rates, and forward guidance. The next two sections turn to central bank communications and management of expectations and then mechanisms of policy transmission. The fifth part explores the challenges of recent developments in the economy and debates about the roles central banks should play, focusing on micro- and macro-prudential arguments. The implications of recent developments for policy modeling are covered in the last section. The breadth and depth enhances understanding of the challenges and opportunities facing central banks.
Download or read book On the Interventions of the Central Banks During the Global Financial Crisis of 2007 A Critical Analysis and Comparison Between the European Central Bank and the FED written by Lucien Brantschen and published by . This book was released on 2010 with total page 146 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Transformation of the European Financial System written by Vitor Gaspar and published by . This book was released on 2003-01-01 with total page 334 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Effectiveness of Central Bank Interventions During the First Phase of the Subprime Crisis written by Mr.Heiko Hesse and published by International Monetary Fund. This book was released on 2009-09-01 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper provides evidence that central bank interventions had a statistically significant impact on easing stress in unsecured interbank markets during the first phase of the subprime crisis which began in July 2007. Extraordinary liquidity provisions, such as the Term Auction Facility by the Federal Reserve, are analyzed. First a decomposition of the Libor-OIS spread indicates that credit premia increased in importance as the crisis deepened. Second, using Markov switching models, central bank operations are then graphically associated with reductions in term funding stress. Finally, bivariate VAR and GARCH models are adopted to econometrically quantified these impacts. While helpful in compressing Libor spreads, the economic magnitudes of central interventions have overall not been very large.
Download or read book The New European Central Bank Taking Stock and Looking Ahead written by Thomas Beukers and published by Oxford University Press. This book was released on 2022-12-02 with total page 481 pages. Available in PDF, EPUB and Kindle. Book excerpt: The European Central Bank (ECB) was first introduced in the European legal order on the occasion of the Treaty of Maastricht (1992). An official EU institution which is governed by EU law, the ECB of modern times differs vastly from its inception in 1998, which manifests in three main ways: monetary policy options, consideration of concerns other than low inflation in its policy-making, and its role in the Banking Union. This edited collection offers a retrospective and prospective account of the ECB, charting its evolution in detail with chapters written by leading academics and practitioners. Part 1 examines the substantive changes to monetary policy introduced by the ECB as a consequence of the financial and sovereign debt crisis by considering their legal basis. Part 2 moves beyond monetary policy by shifting to the new roles that the ECB has been called upon to play, notably in banking supervision and resolution. Parts 3 and 4 deal with transformations to inter- and intra-institutional relations, and take stock of these transformations, reflecting on the nature of the ECB of current times and which direction it could be heading in the future. The authors analyse the most salient and controversial elements of the ECB's crisis response, including unconventional monetary policy measures and the ECB's risk management strategy. Beyond monetary policy, the book further examines the role played by objectives such as financial stability and environmental sustainability, the ECB's relationship to the Lender of Last Resort function, as well as its new responsibilities in the Banking Union.
Download or read book The Monetary Policy of Central Banks before and during the Crisis written by Daniel Schuck and published by GRIN Verlag. This book was released on 2015-07-06 with total page 94 pages. Available in PDF, EPUB and Kindle. Book excerpt: Master's Thesis from the year 2014 in the subject Economics - International Economic Relations, grade: 1,2, University of Applied Sciences Saarbrücken (Faculty of Business and Economics), language: English, abstract: The Federal Reserve System and the European Central Bank were both forced to implement unconventional monetary policy measures as a response to the severe impact of the global financial crisis and its aftermath. In the first stage of the global financial crisis, the conventional and unconventional monetary policy measures implemented by the Federal Reserve System and the European Central Bank were fairly similar. Both central banks focused on providing the banking sector with liquidity in order to restore interbank lending as it was a key element of ensuring a functional monetary transmission mechanism. However, when the global financial crisis transformed to a sovereign debt crisis in the euro area in 2010, the European Central Bank faced increasing divergence in sovereign spreads and the potential insolvency of euro area Member States. Therefore, its unconventional monetary policy measures focused on credit easing by purchasing sovereign as well as covered bonds in order to improve banks’ and governments’ funding costs. By contrast, the Federal Reserve System massively purchased government bonds and focused on decreasing interest rates and asset prices through the use of quantitative easing.
Download or read book Central Bank Independence and the Future of the Euro written by Panicos O. Demetriades and published by . This book was released on 2020 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Over the past decade central banks have taken on new and expanded roles in an attempt to manage the global financial crisis. Panicos Demetriades, former governor of the Central Bank of Cyprus during the country's bailout in 2013, examines the role of the ECB and its adoption of these new powers.
Download or read book The Impact of European Central Bank Intervention Announcements on Stock and Bond Markets During Crisis written by Tina Theresa Koglbauer and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Even though the 2008 Financial Crisis ended nearly a decade ago, the impact of monetary policy announcements of the ECB is still an ongoing research topic. Hence the question pursued in this study is how both conventional and unconventional monteray policiy announcemnts of the ECB affected the stock-and bond markets of 11 EMU member countries during varying time periods. To test the hypothesis whether unconventional monetary policy announcements had a more significant impact on peripheal EMU member countries compared to core ones, past stock and bond market data such as daily stock returns of the main stock market indices and bond yields of each countries 10-year government bond were collected. An event study analysis revealed that unconventional monetary polcies overall had a greater impact on EMU members stock and bond markets. In conclusion, it showed that unconventional monetary policies were more effective than conventional ones, especially for peripheray countries as opposed to core EMU countries.This outcome may have implications for future crisis management and the expectations and outlook both professionals and individuals have on monetary policy announcements. *****Even though the 2008 Financial Crisis ended nearly a decade ago, the impact of monetary policy announcements of the ECB is still an ongoing research topic. Hence the question pursued in this study is how both conventional and unconventional monteray policiy announcemnts of the ECB affected the stock-and bond markets of 11 EMU member countries during varying time periods. To test the hypothesis whether unconventional monetary policy announcements had a more significant impact on peripheal EMU member countries compared to core ones, past stock and bond market data such as daily stock returns of the main stock market indices and bond yields of each countries 10-year government bond were collected. An event study analysis revealed that unconventional monetary polcies overall had a greater impact on
