The effect of the European Central Bank’s asset purchase programmes on Spain’s public finances
29 Pages Posted: 17 Jul 2024
Date Written: March 18, 2024
Abstract
This paper empirically quantifies the effect on Spain’s public finances of the asset purchase programmes implemented in the euro area between 2015 and 2022. Specifically, it evaluates the impact of the ECB’s Asset Purchase Programme (APP) and Pandemic Emergency Purchase Programme (PEPP) on Spanish public revenue, expenditure, deficit and debt. The results suggest that these programmes have had a significant cumulative downward effect on the level of public debt.
Keywords: quantitative easing, asset purchase programmes, unconventional monetary policy, term structure models, signaling and portfolio balance effects, expectations channel, fiscal effects
JEL Classification: E43, E44, E52, E63, E65, G18
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