Effectiveness and Transmission of the ECB's Balance Sheet Policies

33 Pages Posted: 20 Aug 2014

See all articles by Jef Boeckx

Jef Boeckx

National Bank of Belgium

Maarten Dossche

National Bank of Belgium

Gert Peersman

Ghent University - Department of Financial Economics

Date Written: July 30, 2014

Abstract

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 are 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.

Keywords: unconventional monetary policy, ECB balance sheet, euro area, VAR

JEL Classification: C32, E30, E44, E51, E52

Suggested Citation

Boeckx, Jef and Dossche, Maarten and Peersman, Gert, Effectiveness and Transmission of the ECB's Balance Sheet Policies (July 30, 2014). CESifo Working Paper Series No. 4907. Available at SSRN: https://ssrn.com/abstract=2482978

Jef Boeckx

National Bank of Belgium ( email )

Brussels, B-1000
Belgium

Maarten Dossche

National Bank of Belgium ( email )

Brussels, B-1000
Belgium

Gert Peersman (Contact Author)

Ghent University - Department of Financial Economics ( email )

W. Wilsonplein 5D
Ghent, 9000
Belgium
+3292643514 (Phone)

HOME PAGE: www.feb.ugent.be/fineco/gert.html

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