The ECB and the Interbank Market
Federal Reserve Banks - Federal Reserve Bank of New York; Centre for Economic Policy Research (CEPR); LUISS Guido Carli University
European Central Bank (ECB)
Goldman Sachs, Australia
London Business School; Université Libre de Bruxelles (ULB) - European Center for Advanced Research in Economics and Statistics (ECARES); Centre for Economic Policy Research (CEPR); European Central Bank (ECB)
November 20, 2012
ECB Working Paper No. 1496
We analyse the impact on the euro area economy of the ECB’s non-standard monetary policy measures by studying the effect of the expansion of intermediation of interbank transactions across the central bank balance sheet. We exploit data drawn from the aggregated Monetary and Financial Institutions (MFI) balance sheet, which allows us to construct a measure of the ‘policy shock’ represented by the ECB’s increasing role as a financial intermediary. We find small but significant effects both on loans and real economic activity.
Number of Pages in PDF File: 32
Keywords: non-standard monetary policy measures, interbank market
JEL Classification: E5, E58
Date posted: December 4, 2012
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