The Use of the Eurosystem's Monetary Policy Instruments and its Monetary Policy Implementation Framework Q2 2016 – Q4 2017

58 Pages Posted: 8 May 2018

See all articles by Alexander Bock

Alexander Bock

Deutsche Bundesbank

Miha Cajnko

European Central Bank (ECB)

Svetla Daskalova

European Central Bank (ECB)

Iwona Durka

European Central Bank (ECB)

Brian Gallagher

Independent

Roel Grandia

European Central Bank (ECB)

Glenn Haberbush

European Central Bank (ECB)

Annette Kamps

Kiel Institute for the World Economy

Alaoishe Luskin

Central Bank of Ireland

Michelina Lo Russo

Independent

Ma Carmen Castillo Lozoya

Banco de España

Filippo Pasqualone

Bank of Italy

Michael Thomas

Deutsche Bundesbank

Isabel Vasconcelos

Banco do Portugal

Date Written: April 30, 2018

Abstract

This paper provides a comprehensive overview of the use of the Eurosystem’s monetary policy instruments and the operational framework from the second quarter of 2016 to the last quarter of 2017. It reviews the context of Eurosystem market operations; the design and operation of the Eurosystem’s counterparty and collateral frameworks; the fulfilment of minimum reserve requirements; participation in credit operations and recourse to standing facilities; and the conduct of outright asset purchase programmes. The paper also discusses the impact of monetary policy implementation on the Eurosystem's balance sheet, excess liquidity and money market liquidity conditions.

Keywords: monetary policy implementation, central bank counterparty framework, central bank collateral framework, central bank liquidity management, non-standard monetary policy measures

JEL Classification: D02, E43, E58, E65, G01

Suggested Citation

Bock, Alexander and Cajnko, Miha and Daskalova, Svetla and Durka, Iwona and Gallagher, Brian and Grandia, Roel and Haberbush, Glenn and Kamps, Annette and Luskin, Alaoishe and Lo Russo, Michelina and Castillo Lozoya, Ma Carmen and Pasqualone, Filippo and Thomas, Michael and Vasconcelos, Isabel, The Use of the Eurosystem's Monetary Policy Instruments and its Monetary Policy Implementation Framework Q2 2016 – Q4 2017 (April 30, 2018). ECB Occasional Paper No. 209, Available at SSRN: https://ssrn.com/abstract=3172028 or http://dx.doi.org/10.2139/ssrn.3172028

Alexander Bock

Deutsche Bundesbank ( email )

Wilhelm-Epstein-Str. 14
Frankfurt/Main, 60431
Germany

Miha Cajnko (Contact Author)

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Svetla Daskalova

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Iwona Durka

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Brian Gallagher

Independent

Roel Grandia

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Glenn Haberbush

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Annette Kamps

Kiel Institute for the World Economy ( email )

P.O. Box 4309
Kiel, Schleswig-Hosltein D-24100
Germany

Alaoishe Luskin

Central Bank of Ireland ( email )

P.O. Box 559
Dame Street
Dublin, 2
Ireland

Michelina Lo Russo

Independent ( email )

Ma Carmen Castillo Lozoya

Banco de España ( email )

Alcala 50
Madrid 28014
Spain

Filippo Pasqualone

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Michael Thomas

Deutsche Bundesbank ( email )

Wilhelm-Epstein-Str. 14
Frankfurt/Main, 60431
Germany

Isabel Vasconcelos

Banco do Portugal ( email )

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