Download This PaperThe New Decrease of Interest Rates by the ECB Will Be Totally Ineffective
4 Pages Posted: 8 May 2013
Date Written: May 7, 2013
Abstract
On May 2 the ECB has decreased the interest rate on the main refinancing operations of the Eurosystem by 25 basis points, to 0.50%, starting from the operation to be settled on 8 May 2013. The interest rate on the marginal lending facility will also be decreased by 50 basis points, to 1.00%. This short paper explains the structural reasons why the current monetary policy conducted by the ECB is ineffective.
Keywords: European Central Bank, monetary policy
JEL Classification: E58
Suggested Citation: Suggested Citation
Dor, Eric, The New Decrease of Interest Rates by the ECB Will Be Totally Ineffective (May 7, 2013). Available at SSRN: https://ssrn.com/abstract=2261800 or http://dx.doi.org/10.2139/ssrn.2261800
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