European Central Bank Tools and Policy Actions A: Open Market Operations, Collateral Expansion and Standing Facilities

Yale Program on Financial Stability Case Study 2015-2A-V1

21 Pages Posted: 26 Jan 2016 Last revised: 4 Mar 2016

See all articles by Chase P. Ross

Chase P. Ross

Yale School of Management

Rosalind Wiggins

Yale Program on Financial Stability

Andrew Metrick

Yale School of Management; National Bureau of Economic Research (NBER); Yale University - Yale Program on Financial Stability

Date Written: July 15, 2015

Abstract

Beginning in August 2007, the European Central Bank (ECB) responded to market turmoil with a variety of standard and non-standard monetary policy tools. This case discusses the operational framework of the ECB’s open market operation tools and standing facilities before and during the financial crisis. Specifically, this case describes the ECB’s use of its main refinancing and longer-term refinancing operations, the expansion of collateral eligible for use in Eurosystem credit operations, and the ECB’s standing facilities, including its marginal lending and deposit facilities.

Keywords: Systemic Risk, Financial Crises, Open Market Operations, Collateral, Standing Facilities

JEL Classification: G01, G28

Suggested Citation

Ross, Chase and Wiggins, Rosalind and Metrick, Andrew, European Central Bank Tools and Policy Actions A: Open Market Operations, Collateral Expansion and Standing Facilities (July 15, 2015). Yale Program on Financial Stability Case Study 2015-2A-V1. Available at SSRN: https://ssrn.com/abstract=2721873 or http://dx.doi.org/10.2139/ssrn.2721873

Chase Ross (Contact Author)

Yale School of Management

165 Whitney Street
New Haven, CT 06511
United States

Rosalind Wiggins

Yale Program on Financial Stability ( email )

165 Whitney Avenue
P.O. Box 208200
New Haven, CT 06520-8200
United States

Andrew Metrick

Yale School of Management ( email )

165 Whitney Avenue
New Haven, CT 06511
United States
(203)-432-3069 (Phone)

HOME PAGE: http://faculty.som.yale.edu/andrewmetrick/

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Yale University - Yale Program on Financial Stability

165 Whitney Avenue
P.O. Box 208200
New Haven, CT 06520-8200
United States

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