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ECB Policy Responses between 2007 and 2014: a chronological analysis and a money quantity assessment of their effects

Author

Listed:
  • Carlos Rodriguez

    (University of the Basque Country (UPV/EHU))

  • Carlos A. Carrasco

    (University of the Basque Country (UPV/EHU))

Abstract

In this paper, we analyse the ECB policy measures in place since the outbreak of the financial crisis. First, we discuss the categorisation of the measures implemented by the ECB. Second, we study the phases of the crises and the concrete policy responses. Third, we conduct a comparative analysis of the ECB and the FED responses at the beginning of the crises with regard to the financial system structure, the determinants of the balance sheet size and composition, the risk absorbed, and the exit strategy involved. Finally, we discuss the effectiveness of the ECB’s monetary policy from a traditional monetarist perspective during the entire period, by analysing its impact on monetary aggregates and the money multiplier.

Suggested Citation

  • Carlos Rodriguez & Carlos A. Carrasco, 2014. "ECB Policy Responses between 2007 and 2014: a chronological analysis and a money quantity assessment of their effects," Working papers wpaper65, Financialisation, Economy, Society & Sustainable Development (FESSUD) Project.
    • Handle: RePEc:fes:wpaper:wpaper65
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Ramona Mihaela Costache & Andrei Radutu, 2018. "Thematic Network for a Fair Radiography of the Global Financial Crisis: An ANP Model," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 8(4), pages 243-258, April.
    2. Ali Rıza Güngen, 2016. "Whatever it takes? The European Central Bank's Sovereign Debt Interventions in the Eurozone Crisis," Yildiz Social Science Review, Yildiz Technical University, vol. 2(2), pages 39-52.
    3. Florentina Melnic, 2017. "The Financial Crisis Response. Comparative Analysis Between European Union And Usa," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 19, pages 129-155, June.
    4. Fiorelli, Cristiana & Meliciani, Valentina, 2019. "Economic growth in the era of unconventional monetary instruments: A FAVAR approach," Journal of Macroeconomics, Elsevier, vol. 62(C).
    5. Piotr Fiszeder & Ilona Pietryka, 2018. "Monetary policy in steering the EONIA and POLONIA rates in the Eurosystem and Poland: a comparative analysis," Empirical Economics, Springer, vol. 55(2), pages 445-470, September.
    6. Lilia Cavallari & Simone Romano, 2016. "Foresight And The Macroeconomic Impact Of Fiscal Policy: Evidence For France, Germany And Italy," Working Papers 0216, CREI Università degli Studi Roma Tre, revised 2016.
    7. Jesus Ferreiro, 2016. "Macroeconomic and financial sector policies to better serve the economy and society," Working papers wpaper165, Financialisation, Economy, Society & Sustainable Development (FESSUD) Project.
    8. Roumeen Islam, 2017. "Growth after Crisis in Europe: An Interdependence of Macroeconomic and Structural Policies," Cyprus Economic Policy Review, University of Cyprus, Economics Research Centre, vol. 11(2), pages 19-62, December.
    9. Aykut Ekinci, 2016. "Rethinking Credit Risk under the Malinvestment Concept: The Case of Germany, Spain and Italy," European Financial and Accounting Journal, Prague University of Economics and Business, vol. 2016(1), pages 39-63.
    10. Piroska, Dóra, 2017. "Funding Hungary: Exposing Normal and Dysfunctional Crisis Management," Corvinus Economics Working Papers (CEWP) 2017/01, Corvinus University of Budapest.

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    More about this item

    Keywords

    ECB; unconventional monetary policy; money multiplier; monetary aggregates; European crises;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • F15 - International Economics - - Trade - - - Economic Integration
    • N14 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: 1913-

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