The ECB's asset purchase programmes : effectiveness, risks, alternatives : monetary dialogue papers, September 2020
We summarise the empirical evidence on effects of asset purchases in the euro area, including the PEPP programme launched in response to the COVID-19 crisis. We conclude that QE is particularly effective during times of high financial stress, i.e. at the peak of a crisis, but tends to lose impact over time. At the same time, QE policies come with prominent risks which may materialise only in the longer term. We suggest a scheme of rule-based intervention in sovereign debt markets that preserves the role of yield spreads as a market signal, while containing the risk of bad equilibria. This document was provided by Policy Department A at the request of the Committee on Economic and Monetary Affairs (ECON)
eBook, English, 2020
[European Parliament], [Brussels], 2020
1 online resource
9789284670956, 9284670950
1222783951
Manuscript completed: September 2020. Date of publication: September 2020