Sectoral Sales of Government Securities During the ECB's Asset Purchase Programme

7 Pages Posted: 19 Dec 2016

See all articles by Ramón Adalid

Ramón Adalid

European Central Bank (ECB)

Spyros Palligkinis

European Central Bank (ECB)

Date Written: December 18, 2016

Abstract

The transmission channels of quantitative easing programmes partly depend on which sectors sell the securities that the central bank purchases. This note examines the behaviour of the main euro area sectors in response to the public sector leg of the ECB’s extended asset purchase (APP) programme. For each sector we compare realised net flows of government securities to those that would have occurred in the absence of the programme. We find that most sales are attributable to sectors other than euro area banks, with non-euro area residents standing out as the most responsive sector. We discuss the implications of this finding for the transmission of the QE policy in the euro area.

Keywords: unconventional monetary policy, quantitative easing, portfolio balance channel

JEL Classification: E52, E58

Suggested Citation

Adalid, Ramón and Palligkinis, Spyros, Sectoral Sales of Government Securities During the ECB's Asset Purchase Programme (December 18, 2016). Available at SSRN: https://ssrn.com/abstract=2887084 or http://dx.doi.org/10.2139/ssrn.2887084

Ramón Adalid

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Spyros Palligkinis (Contact Author)

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

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