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The financial and macroeconomic effects of OMT announcements

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  • Michele Lenza

Abstract

The ECB’s announcements that it could conduct Outright Monetary Transactions led to sizeable changes in the yield curves of some euro area countries. In particular, two-year bond yields in Italy and Spain are estimated to have fallen by around 200 basis points. As a consequence, it is likely that the announcements have had a positive effect on economic activity, prices and loans in Italy and Spain. JEL Classification: E47, E58, C54

Suggested Citation

  • Michele Lenza, 2015. "The financial and macroeconomic effects of OMT announcements," Research Bulletin, European Central Bank, vol. 22, pages 12-16.
    • Handle: RePEc:ecb:ecbrbu:2015:0022:2
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    More about this item

    Keywords

    outright monetary transactions; event study; news; multi-country vector autoregressive model;
    All these keywords.

    JEL classification:

    • E47 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Forecasting and Simulation: Models and Applications
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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