Macroeconomic Effects of Unconventional Monetary Policy in the Euro Area

30 Pages Posted: 20 Apr 2011

See all articles by Gert Peersman

Gert Peersman

Ghent University - Department of Financial Economics

Multiple version iconThere are 3 versions of this paper

Date Written: April 2011

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: SVARs, unconventional monetary policy

JEL Classification: C32, E30, E44, E51, E52

Suggested Citation

Peersman, Gert, Macroeconomic Effects of Unconventional Monetary Policy in the Euro Area (April 2011). Available at SSRN: https://ssrn.com/abstract=1815843

Gert Peersman (Contact Author)

Ghent University - Department of Financial Economics ( email )

W. Wilsonplein 5D
Ghent, 9000
Belgium
+3292643514 (Phone)

HOME PAGE: www.feb.ugent.be/fineco/gert.html

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