Abstract

http://ssrn.com/abstract=2407919
 


 



Effects of ECB Balance Sheet Policy Announcements on Inflation Expectations


Richhild Moessner


De Nederlandsche Bank

March 12, 2014

De Nederlandsche Bank Working Paper No. 416

Abstract:     
We investigate whether ECB balance sheet policy announcements in the wake of the global financial crisis have affected the ECB's monetary policy credibility as measured by long-term inflation expectations, by looking at their effects on euro area inflation swap rates of maturities up to 10 years. We consider asset purchase programmes and long-term refinancing operations with maturities above 6 months. We find that these announcements only led to a slight increase in long-term inflation expectations. We therefore find no strong evidence to suggest that ECB balance sheet policy announcements have led to much higher long-term inflation expectations, suggesting that the monetary policy credibility of the ECB has not been harmed by these policies.

Number of Pages in PDF File: 17

Keywords: Monetary policy, central bank communication, balance sheet policies, inflation expectations

JEL Classification: E52, E58

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Date posted: March 13, 2014  

Suggested Citation

Moessner, Richhild, Effects of ECB Balance Sheet Policy Announcements on Inflation Expectations (March 12, 2014). De Nederlandsche Bank Working Paper No. 416. Available at SSRN: http://ssrn.com/abstract=2407919 or http://dx.doi.org/10.2139/ssrn.2407919

Contact Information

Richhild Moessner (Contact Author)
De Nederlandsche Bank ( email )
PO Box 98
1000 AB Amsterdam
Amsterdam, 1000 AB
Netherlands
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