Fragmentation And Monetary Policy In The Euro Area

Author : Mr.Ali J Al-Eyd,Pelin Berkmen
Publisher : International Monetary Fund
Page : 32 pages
File Size : 55,7 Mb
Release : 2013-10-04
Category : Business & Economics
ISBN : 9781484328750

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Fragmentation and Monetary Policy in the Euro Area by Mr.Ali J Al-Eyd,Pelin Berkmen Pdf

The ECB has taken a range of actions to address bank funding problems, eliminate excessive risk in sovereign markets, and safeguard monetary transmission. But euro area financial markets have remained fragmented, driving retail interest rates in stressed markets far above those in the core. This has impeded the flow of credit and undermined the transmission of monetary policy. Analysis presented here indicates that the credit channel of monetary policy has broken down during the crisis, particularly in stressed markets, and that SMEs in these economies appear to be most affected by elevated lending rates.Given these stresses, the ECB can undertake additional targeted policy measures, including through additional term loans, collateral policies, and private asset purchases.

Author : Massimo Rostagno,Carlo Altavilla,Giacomo Carboni,Jonathan Yiangou
Publisher : Oxford University Press
Page : 449 pages
File Size : 43,9 Mb
Release : 2021
Category : Business & Economics
ISBN : 9780192895912

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Monetary Policy in Times of Crisis by Massimo Rostagno,Carlo Altavilla,Giacomo Carboni,Jonathan Yiangou Pdf

The first twenty years of the European Central Bank offer a unique insight into how a central bank can navigate macroeconomic insecurity and crisis. This volume examines the structures and decision-making processes behind the complex measures taken by the ECB to tackle some of the toughest economic challenges in the history of modern Europe.

Author : Ignazio Angeloni,Anil K. Kashyap,Benoît Mojon
Publisher : Cambridge University Press
Page : 515 pages
File Size : 53,9 Mb
Release : 2003-12-04
Category : Business & Economics
ISBN : 9781139438810

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Monetary Policy Transmission in the Euro Area by Ignazio Angeloni,Anil K. Kashyap,Benoît Mojon Pdf

This 2003 book offers the most systematic analysis available of the impact of European Central Bank monetary policy on the national economies of the Eurozone. Analysing macro and micro-economic evidence, with chapters by central bank economists, including a discussion chapter by eminent macroeconomists, it is an essential contribution to research on the subject.

Author : Mr.Charles Enoch,Mr.Luc Everaert,Mr.Thierry Tressel,Ms.Jianping Zhou
Publisher : International Monetary Fund
Page : 524 pages
File Size : 43,8 Mb
Release : 2013-12-11
Category : Business & Economics
ISBN : 9781475570311

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From Fragmentation to Financial Integration in Europe by Mr.Charles Enoch,Mr.Luc Everaert,Mr.Thierry Tressel,Ms.Jianping Zhou Pdf

From Fragmentation to Financial Integration in Europe is a comprehensive study of the European Union financial system. It provides an overview of the issues central to securing a safer financial system for the European Union and looks at the responses to the global financial crisis, both at the macro level—the pendulum of financial integration and fragmentation—and at the micro level—the institutional reforms that are taking place to address the crisis. The emerging financial sector management infrastructure, including the proposed Single Supervisory Mechanism and other elements of a banking union for the euro area, are also discussed in detail.

Author : Paul Mercier,Francesco Papadia
Publisher : OUP Oxford
Page : 416 pages
File Size : 49,7 Mb
Release : 2014-10-02
Category : Business & Economics
ISBN : 9780191043604

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The Concrete Euro by Paul Mercier,Francesco Papadia Pdf

The euro area's framework for monetary policy implementation was introduced in 1999. Eleven years on, this volume examines the theoretical and historical underpinnings of the framework, how it has fared in practice, and what challenges it is likely to face in the future. The technology serving the implementation of monetary policy has historically been the exclusive preserve of a narrow group of specialists but the recent global financial crisis brought the issue into the public eye, as the supply of base money exploded while inflation risked turning into deflation. This book addresses all the aspects of monetary policy implementation, with particular emphasis on the European Central Bank and the euro, allowing a more informed assessment of a neglected, but important, aspect of economic life, and a better understanding of the exceptional developments brought about by the financial crisis. Written by the leading money market operators at the European Central Bank who were involved in creating and implementing the framework, and who are still managing monetary policy implementation at the Bank today, this book provides a rare insider account of how the framework has evolved, how it works in practice, and the challenges of monetary policy implementation going forward.

Author : Robert C. M. Beyer,Rupa Duttagupta,Alexandra Fotiou,Ms. Keiko Honjo,Mr. Mark A Horton,Zoltan Jakab,Vina Nguyen,Mr. Rafael A Portillo,Jesper Lindé,Mrs. Nujin Suphaphiphat,Mr. Li Zeng
Publisher : International Monetary Fund
Page : 27 pages
File Size : 47,9 Mb
Release : 2023-07-21
Category : Business & Economics
ISBN : 9798400249051

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Shared Problem, Shared Solution: Benefits from Fiscal-Monetary Interactions in the Euro Area by Robert C. M. Beyer,Rupa Duttagupta,Alexandra Fotiou,Ms. Keiko Honjo,Mr. Mark A Horton,Zoltan Jakab,Vina Nguyen,Mr. Rafael A Portillo,Jesper Lindé,Mrs. Nujin Suphaphiphat,Mr. Li Zeng Pdf

This paper employs two established macroeconomic models to show that fiscal policy in the euro area can help monetary policy in reducing inflation. Specifically, a fiscal consolidation of 1 percent of GDP for two years and 0.5 percent in the third year across the euro area would ease the policy interest rate by 30-50 basis points relative to the baseline scenario, while lowering inflation. It would also put the public debt-to-GDP ratio on a downward path, with the output costs reversing after the second year. Additionally, a stronger fiscal contribution to the policy mix could mitigate financial fragmentation risks. In the current context of elevated inflation in all euro area economies, the findings suggest two key takeaways: first, synchronized fiscal and monetary policies offer gains even when monetary policy is unconstrained and, second, sharing the burden of lowering inflation through fiscal consolidation among euro area members is beneficial for union-wide inflation reduction, improving debt sustainability and inducing a lower policy rate path.

Author : International Monetary Fund. European Dept.
Publisher : International Monetary Fund
Page : 72 pages
File Size : 50,9 Mb
Release : 2013-07-25
Category : Business & Economics
ISBN : 9781484347850

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Euro Area Policies by International Monetary Fund. European Dept. Pdf

This Selected Issues paper on Euro Area Policies 2013 Article IV Consultation highlights the monetary transmission mechanism and monetary policies. The European Central Bank has announced the Outright Monetary Transactions framework to address severe distortions in sovereign bond markets and safeguard monetary transmission. The cost of unsecured bond issuance remains elevated for both core and periphery banks, but there is a growing divergence between the two, driven mainly by rising periphery spreads. Weak growth and high levels of private balance sheet debt in the periphery are weighing on the health of bank balance sheets.

Author : Ms.Petya Koeva Brooks,Mahmood Pradhan
Publisher : International Monetary Fund
Page : 286 pages
File Size : 55,8 Mb
Release : 2015-10-21
Category : Business & Economics
ISBN : 9781498305532

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The Mechanics of a Strong Euro Area by Ms.Petya Koeva Brooks,Mahmood Pradhan Pdf

Among member states, many structural weaknesses were exposed when economic performance declined significantly and financial markets became more discerning. This book focuses on the analytical underpinnings of real-time policy advice given to euro area policymakers during four cycles of the IMF’s annual Article IV consultations (2012–15) with euro area authorities.

Author : Otmar Issing
Publisher : Cambridge University Press
Page : 220 pages
File Size : 49,9 Mb
Release : 2001-07-26
Category : Business & Economics
ISBN : 0521788889

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Monetary Policy in the Euro Area by Otmar Issing Pdf

A non-technical analysis of the monetary policy strategy, institutions and operational procedures of the Eurosystem, first published in 2001.

Author : Nicoletta Batini,Mr.Alessandro Cantelmo,Mr.Giovanni Melina,Stefania Villa
Publisher : International Monetary Fund
Page : 75 pages
File Size : 51,8 Mb
Release : 2020-06-05
Category : Business & Economics
ISBN : 9781513546087

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How Loose, How Tight? A Measure of Monetary and Fiscal Stance for the Euro Area by Nicoletta Batini,Mr.Alessandro Cantelmo,Mr.Giovanni Melina,Stefania Villa Pdf

This paper builds a model-based dynamic monetary and fiscal conditions index (DMFCI) and uses it to examine the evolution of the joint stance of monetary and fiscal policies in the euro area (EA) and in its three largest member countries over the period 2007-2018. The index is based on the relative impacts of monetary and fiscal policy on demand using actual and simulated data from rich estimated models featuring also financial intermediaries and long-term government debt. The analysis highlights a short-lived fiscal expansion in the aftermath of the Global Financial Crisis, followed by a quick tightening, with monetary policy left to be the “only game in town” after 2013. Individual countries’ DMFCIs show that national policy stances did not always mirror the evolution of the aggregate stance at the EA level, due to heterogeneity in the fiscal stance.

Author : Andreas Jobst,Huidan Lin
Publisher : International Monetary Fund
Page : 48 pages
File Size : 48,9 Mb
Release : 2016-08-10
Category : Business & Economics
ISBN : 9781475524475

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Negative Interest Rate Policy (NIRP) by Andreas Jobst,Huidan Lin Pdf

More than two years ago the European Central Bank (ECB) adopted a negative interest rate policy (NIRP) to achieve its price stability objective. Negative interest rates have so far supported easier financial conditions and contributed to a modest expansion in credit, demonstrating that the zero lower bound is less binding than previously thought. However, interest rate cuts also weigh on bank profitability. Substantial rate cuts may at some point outweigh the benefits from higher asset values and stronger aggregate demand. Further monetary accommodation may need to rely more on credit easing and an expansion of the ECB’s balance sheet rather than substantial additional reductions in the policy rate.

Author : International Monetary Fund
Publisher : International Monetary Fund
Page : 120 pages
File Size : 42,6 Mb
Release : 2002-10-29
Category : Business & Economics
ISBN : 9781451812985

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Monetary and Exchange Rate Policies of the Euro Area by International Monetary Fund Pdf

This paper examines monetary and exchange rate policies of the euro area. The paper reviews the European Central Bank’s definition of price stability, and examines the factors determining “the optimal rate of inflation” in the euro area. It reviews the benefits of price stability, including the reduction in the distortions of savings and investment behavior that stem from the interaction between nominal tax systems and inflation. It then goes on to evaluate arguments for maintaining a small positive inflation rate in the context of the euro area.

Author : Helge Berger
Publisher : International Monetary Fund
Page : 60 pages
File Size : 53,6 Mb
Release : 2002
Category : Euro
ISBN : UCSD:31822032032435

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The ECB and Euro-area Enlargement by Helge Berger Pdf

Author : International Monetary Fund. European Dept.
Publisher : International Monetary Fund
Page : 112 pages
File Size : 49,5 Mb
Release : 2015-07-27
Category : Business & Economics
ISBN : 9781513523088

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Euro Area Policies by International Monetary Fund. European Dept. Pdf

This Selected Issues paper discusses the risks of low growth and inflation over the medium term for the euro area. It examines the consequences of longer term trends that predate the crisis and the progress made in addressing the crisis legacies of high unemployment and debt. The paper illustrates, in a downside scenario, how low potential growth and crisis legacies leave the euro area vulnerable to the risks of stagnation. The weak medium-term prospect and limited policy space leave the euro area vulnerable to shocks that could lead to a prolonged period of low growth and inflation. Model simulations suggest that a modest shock to investor confidence could push up risk premia and real interest rates, as policy space is constrained at the zero lower bound and fiscal policy space to provide stimulus is limited. Moreover, the lingering crisis legacies of high debt and unemployment could amplify the original shocks, creating a bad feedback loop and keeping the economy stuck in equilibrium of stagnation.

Author : Rishi Goyal,Ms.Petya Koeva Brooks,Mahmood Pradhan,Mr.Thierry Tressel,Mr.Giovanni Dell'Ariccia,Ceyla Pazarbasioglu
Publisher : International Monetary Fund
Page : 31 pages
File Size : 52,9 Mb
Release : 2013-02-12
Category : Business & Economics
ISBN : 9781475569827

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A Banking Union for the Euro Area by Rishi Goyal,Ms.Petya Koeva Brooks,Mahmood Pradhan,Mr.Thierry Tressel,Mr.Giovanni Dell'Ariccia,Ceyla Pazarbasioglu Pdf

The SDN elaborates the case for, and the design of, a banking union for the euro area. It discusses the benefits and costs of a banking union, presents a steady state view of the banking union, elaborates difficult transition issues, and briefly discusses broader EU issues. As such, it assesses current plans and provides advice. It is accompanied by three background technical notes that analyze in depth the various elements of the banking union: a single supervisory framework; a single resolution and common safety net; and urgent issues related to repair of weak banks in Europe.