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The impact of the Securities Markets Programme

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  • Simone Manganelli

Abstract

With the escalation of the financial crisis in the euro area, the ECB started to purchase government bonds in the secondary market, with the goal of restoring appropriate levels of liquidity and protecting the monetary transmission mechanism. The fact that SMP interventions were typically carried out on days of sustained market pressure creates major econometric challenges for assessing the impact of the programme. The papers reviewed in this article adopt different perspectives, data and methodologies to solve the identification problem. They find that the SMP contributed to reducing liquidity risk and bond yield volatility. JEL Classification: E5, E4

Suggested Citation

  • Simone Manganelli, 2012. "The impact of the Securities Markets Programme," Research Bulletin, European Central Bank, vol. 17, pages 2-5.
    • Handle: RePEc:ecb:ecbrbu:2012:0017:1
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    File URL: http://www.ecb.europa.eu/pub/pdf/other/researchbulletin17en.pdf
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    References listed on IDEAS

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    Cited by:

    1. Marcel Fratzscher & Malte Rieth, 2019. "Monetary Policy, Bank Bailouts and the Sovereign-Bank Risk Nexus in the Euro Area," Review of Finance, European Finance Association, vol. 23(4), pages 745-775.
    2. Koetter, Michael, 2020. "Lending effects of the ECB’s asset purchases," Journal of Monetary Economics, Elsevier, vol. 116(C), pages 39-52.
    3. Apergis, Nicholas & Christou, Christina, 2015. "The behaviour of the bank lending channel when interest rates approach the zero lower bound: Evidence from quantile regressions," Economic Modelling, Elsevier, vol. 49(C), pages 296-307.
    4. Jakob Korbinian Eberl, 2016. "The Collateral Framework of the Eurosystem and Its Fiscal Implications," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 69.
    5. Doran, David & Dunne, Peter & Monks, Allen & O'Reilly, Gerard, 2013. "Was the Securities Markets Programme Effective in Stabilizing Irish Sovereign Yields?," Research Technical Papers 07/RT/13, Central Bank of Ireland.
    6. Ad Van Riet, 2017. "A New Era For Monetary Policy: Challenges For The European Central Bank," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 62(01), pages 57-86, March.

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    More about this item

    Keywords

    securities markets programme;

    JEL classification:

    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates

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