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Possible Impact of the ECB’s Outright Purchase Programmes on Economic Growth from Individual Eurozone Countries’ Point of View

Author

Listed:
  • Maria Siranova

    (University of Economics in Bratislava, Slovakia)

  • Jana Kotlebova

    (University of Economics in Bratislava, Slovakia)

Abstract

The third wave of ECB’s quantitative easing aims to, among others, support impaired credit provisioning by banking system to real economy. This paper we examine relationship between credit provisioning and economic output in EA member states with ARDL bound test estimated by OLS. Contrary to most of the recent studies we test significance of causal relationship running from credit to domestic output on individual country levels and not for the entire euro area. Our results suggest that in most of the member states the economic growth precedes credit provisioning, a fact that might hinder efforts to support economic recovery through banking channel. In the post-2008 period only four countries show signs of positive impact of increase in bank credit on economic output, namely Austria, France, Germany and Malta.

Suggested Citation

  • Maria Siranova & Jana Kotlebova, 2015. "Possible Impact of the ECB’s Outright Purchase Programmes on Economic Growth from Individual Eurozone Countries’ Point of View," MIC 2015: Managing Sustainable Growth; Proceedings of the Joint International Conference, Portorož, Slovenia, 28–30 May 2015,, University of Primorska, Faculty of Management Koper.
    • Handle: RePEc:mgt:micp15:195-207
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    References listed on IDEAS

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    Cited by:

    1. Bozena Chovancova & Jaroslav Hudcovsky, 2016. "Quantitative Easing in Europe and its Impact on the Stock Market," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 12(3), pages 155-165.

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