The paper analyses the monetary policy responses of the European Central Bank
(ECB) to the global financial crisis and the European sovereign debt crisis.
Our goals are on the one hand to explain chronologically the main measures in
conventional and unconventional policies adopted by the ECB and on the other
hand to analyse their effects on key interest rates, monetary aggregates and
the money multiplier. The assessment is that the ECB?s monetary policy
responses to the crisis have been ?too little, too late?, constrained by the
institutional framework, which prevents the ECB from acting as a true central
bank with the role of lender of last resort.
This chapter aims to provide additional empirical evidence on monetary policy transmission mechanism in Romania over the period 2001 to 2012 based on a BVAR analysis with a KoKo Minnesota/Litterman prior. The importance of the central bank is rising in Romania considering its main attribution to control the interest rate in accordance with its objectives. The empirical evidence provides a significant contribution to literature taking into account the characteristics of the selected emerging country, i.e. Romania, a former communist country in Central and Eastern Europe.
ECB policy responses between 2007 and 2014: A chronological analysis and an assessment of their effects
