Euro area monetary policy in uncharted waters /
prepared by Martin Čihák, Thomas Harjes, and Emil Stavrev.

Description

Main Author

Čihák, Martin.

Related Names

Stavrev, Emil.
Harjes, Thomas, 1969-
International Monetary Fund. European Dept.

Language(s)

English

Published

Washington, D.C. : International Monetary Fund, c2009.

Subjects

European Central Bank > European Central Bank / Econometric models.
Monetary policy > Monetary policy / European Union countries > Monetary policy / European Union countries / Econometric models.
Banks and banking, Central > Banks and banking, Central / European Union countries > Banks and banking, Central / European Union countries / Econometric models.
Financial crises > Financial crises / European Union countries > Financial crises / European Union countries / Econometric models.
Global Financial Crisis, 2008-2009.

Summary

We analyze the European Central Bank's (ECB's) response to the global financial crisis. Our results suggest that even during the crisis, the core part of ECB's monetary policy transmission--from policy rates to market rates--has continued to operate, but at a decreased efficiency. We also find some evidence that the ECB's non-standard measures, namely the lengthening of the maturity of monetary policy operations and the provision of funds at the fixed rate, reduced money market term spreads, facilitating the pass-through from policy to market rates. Furthermore, the results imply that the substantial increase in the ECB's balance sheet may have contributed to a reduction in government bond term spreads.

Note

"August 2009."
At head of title: European Department.
Also available via the World Wide Web.

Physical Description

34 p. : ill. ; 28 cm.

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