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Effectiveness and transmission of the ECB’s balance sheet policies

Listed author(s):
  • Jef Boeckx

    ()

    (Research Department, NBB)

  • Maarten Dossche

    ()

    (Research Department, NBB, ECB)

  • Gert Peersman

    ()

    (Ghent University)

We estimate the effects of exogenous innovations to the balance sheet of the ECB since the start of the financial crisis within a structural VAR framework. An expansionary balance sheet shock stimulates bank lending, stabilizes financial markets, and has a positive impact on economic activity and prices. The effects on bank lending and output turn out to be smaller in the member countries that have been more affected by the financial crisis, in particular those countries where the banking system is less well-capitalized.

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File URL: https://www.nbb.be/doc/oc/repec/reswpp/wp275en.pdf
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Paper provided by National Bank of Belgium in its series Working Paper Research with number 275.

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Length: 35 pages
Date of creation: Dec 2014
Handle: RePEc:nbb:reswpp:201412-275
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  1. Domenico Giannone & Michele Lenza & Huw Pill & Lucrezia Reichlin, 2012. "The ECB and the Interbank Market," Economic Journal, Royal Economic Society, vol. 122(564), pages 467-486, November.
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  9. Bernanke, Ben S & Blinder, Alan S, 1992. "The Federal Funds Rate and the Channels of Monetary Transmission," American Economic Review, American Economic Association, vol. 82(4), pages 901-921, September.
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