The European Central Bank's Securities Markets Programme (ECB GFC)

Smith, Ariel

The European Central Bank's Securities Markets Programme (ECB GFC)

Journal of Financial Crises: Vol. 2 : Iss. 3, 369-381. Available at: https://elischolar.library.yale.edu/journal-of-financial-crises/vol2/iss3/15

Yale Program on Financial Stability Working Paper

15 Pages Posted: 26 Oct 2020

See all articles by Ariel Smith

Ariel Smith

Yale University - Yale Program on Financial Stability

Date Written: October 10, 2020

Abstract

The Eurozone struggled during the escalation of the sovereign debt crisis in 2010. In order to aid malfunctioning securities markets, restore liquidity, and enable proper functioning of the monetary policy transmission mechanism, the European Central Bank (ECB) instituted the Securities Markets Programme (SMP) on May 9, 2010. This program enabled Eurosystem central banks to purchase securities from entities in Greece, Ireland, Portugal, Italy, and Spain. The program ended on September 6, 2012, and evaluations of its effectiveness are mixed.

Keywords: market liquidity, monetary policy transmission mechanism, securities, price stability, sterilization

JEL Classification: G01,G28

Suggested Citation: Suggested Citation

Smith, Ariel, The European Central Bank's Securities Markets Programme (ECB GFC) (October 10, 2020). Journal of Financial Crises: Vol. 2 : Iss. 3, 369-381. Available at: https://elischolar.library.yale.edu/journal-of-financial-crises/vol2/iss3/15, Yale Program on Financial Stability Working Paper, Available at SSRN: https://ssrn.com/abstract=3717284