scholarly journals Integration of Government Bond Market in the Euro Area and Monetary Policy

2016 ◽  
Vol 5 (1) ◽  
pp. 71-97
Author(s):  
Velimir Lukić
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Euro Area ◽  
Debt Crisis ◽  
Bond Market ◽  
Unintended Consequences ◽  
Government Bond ◽  
Lender Of Last Resort ◽  
Yield Spreads ◽  
The Government

Abstract This paper combines analysis of evolution in euro area government bond market integration and interference of European Central Bank with functioning of respective market recently. Since the introduction of euro, government bond yields converged in the euro area, bonds of different countries have become close substitutes in the perception of investors, and overall integration of the market was rather high. At the end of 2008, dramatic shift occurred and ever since disintegrative forces were set in motion. The paper presents the following measures of integration of the government bond markets: yield spreads, dispersion in yield spreads and beta coefficient. All three measures suggest unprecedented market disintegration as of 2010. The paper highlighted relevance of sovereign bond market for the smooth functioning of the monetary policy transmission mechanism in a monetary union context. Three ECB’s programmes aimed at sovereign debt crisis resolution were analysed in details. They proved successful in lowering peripheral countries’ yields and spreads, and calming the markets. If one takes central bank function of the lender of last resort for banks, then these programmes may be viewed as the “buyer of last resort” device for government bonds. Although warranted by exceptional circumstances and need for swift response, a due caution should be paid to these programmes since they pose certain challenges for conduct of monetary policy and might even have unintended consequences.

scholarly journals ECB policy responses between 2007 and 2014: A chronological analysis and an assessment of their effects

2016 ◽  
Vol 63 (4) ◽  
pp. 455-473 ◽  
Author(s):  
Carlos Rodríguez ◽  
Carlos Carrasco
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Interest Rates ◽  
Sovereign Debt ◽  
Global Financial Crisis ◽  
Debt Crisis ◽  
Lender Of Last Resort ◽  
Policy Responses ◽  
The One ◽  
The Global Financial Crisis

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.

scholarly journals Current state of the government bond market in the Russian Federation

2020 ◽  
Vol 13 (2) ◽  
pp. 87-94
Author(s):  
M. N. Lakoza
Keyword(s):  
Monetary Policy ◽  
Russian Federation ◽  
Banking Regulation ◽  
Bond Market ◽  
External Factors ◽  
Government Bond ◽  
Russian Government ◽  
Internal Factors ◽  
The Russian Federation ◽  
The Government

The article reveals the main current trends of the government bond market in the Russian Federation. Various factors that influence the state bond market were studied. External factors included geopolitical risks, rating actions, monetary policy of world Central banks, and the dynamics of oil prices. The main internal factors were: lower inflation, the Bank of Russia’s monetary policy, the return of non–residents to Russian ruble debt, the strengthening of the ruble, the Bank of Russia’s policy in terms of banking regulation, and the flexible policy of initial placement of Federal loan bonds. In 2019, external factors did not have a primary impact on the Russian government securities market, but they determined the General background of investor relations. The market was largely influenced by internal factors.

Mopani deal will exacerbate Zambia's debt crisis

2021 ◽  
Keyword(s):  
Monetary Policy ◽  
Public Sector ◽  
Central Bank ◽  
Public Debt ◽  
Debt Crisis ◽  
Strategic Partner ◽  
Debt Sustainability ◽  
Content Type ◽  
Resource Nationalism ◽  
The Government

Significance This boosts President Edgar Lungu's re-election prospects in August, but ZCCM-IH will struggle to find a 'strategic partner' to replace Glencore. Mounting public debt will undermine efforts to convince the IMF that the government has a path to debt sustainability, depriving Zambia of access to concessional lending and stalling negotiations with bondholders. Impacts Resource nationalism will play well on the Copperbelt, improving the ruling party’s prospects in a region key to securing a poll victory. With little chance of an IMF deal, Lungu will likely make further pre-poll gestures, such as salary increases for public-sector workers. Monetary policy is also likely to suffer, with the central bank under pressure to fund the government's reckless borrowing.

Country-specific euro area government bond yield reactions to ECB’s non-standard monetary policy program announcements

2020 ◽  
Vol 21 (4) ◽  
pp. 417-474 ◽  
Author(s):  
Ralf Fendel ◽  
Frederik Neugebauer
Keyword(s):  
Monetary Policy ◽  
Euro Area ◽  
Yield Reduction ◽  
Government Bond ◽  
Bond Yields ◽  
Bond Yield ◽  
Current Spread ◽  
Policy Program ◽  
Government Bond Markets ◽  
Country Specific

AbstractThis paper employs event study methods to evaluate the effects of ECB’s non-standard monetary policy program announcements on 10-year government bond yields of 11 euro area member states. Measurable effects of announcements arise with a one-day delay meaning that government bond markets take some time to react to ECB announcements. The country-specific extent of yield reduction seems inversely related to the solvency rating of the corresponding countries. The spread between core and periphery countries reduces because of a stronger decrease in the latter. This result is confirmed by letting the announcement variable interact with the current spread level.

scholarly journals Novel market inefficiencies from early Victorian times

2017 ◽  
Vol 24 (2) ◽  
pp. 143-165 ◽  
Author(s):  
Andrew Odlyzko
Keyword(s):  
Nineteenth Century ◽  
Economic Incentives ◽  
Bond Market ◽  
Government Bond ◽  
British Government ◽  
Victorian Culture ◽  
Market Inefficiencies ◽  
Corporate Capitalism ◽  
The Government ◽  
Pricing Anomaly

A previously unknown pricing anomaly existed for a few years in the late 1840s in the British government bond market, in which the larger and more liquid of two very large bonds was underpriced. None of the published mechanisms explains this phenomenon. It may be related to another pricing anomaly that existed for much of the nineteenth century in which terminable annuities were significantly underpriced relative to so-called ‘perpetual’ annuities that dominated the government bond market. The reasons for these mispricings seem to lie in the early Victorian culture, since the basic economic incentives as well as laws and institutions were essentially the familiar modern ones. This provides new perspectives on the origins and nature of modern corporate capitalism.

scholarly journals Monetary policy change of the Central bank of Poland

2015 ◽  
Vol 15 (3) ◽  
pp. 246-259
Author(s):  
Ireneusz Kraś
Keyword(s):  
Monetary Policy ◽  
Economic Policy ◽  
Central Bank ◽  
Policy Change ◽  
Financial System ◽  
Financial Statements ◽  
Democratic Character ◽  
National Bank ◽  
The Republic ◽  
The Government

Abstract The National Bank of Poland is an institution which, in conjunction with the government is responsible for the implementation of country’s economic policy reinforces its democratic character. Provisions of its operation are governed by the Constitution of The Republic of Poland and by the Act on the National Bank of Poland. To this end, the objective of the present research is to analyse the proposed amendments in the Act on the NBP. The latter concerns the amendment procedures, term of office and the rotations and numbers of Monetary Policy Council. The remaining part of the analyses is dedicated to the issue of dismissal of a MPC’s member in conjunction with the prohibition of occupying other positions, the adoption of the NBP’s financial statements and the separation of instruments of monetary policy’s instruments for stability of domestic financial system. Introduced changes in the proposed draft reduce the independence of the NBP while making it more subject to the Cabinet. Following the result of further consultations on the draft of Act on the NBP, provisions which reduce the independence of the NBP shall be partially removed.

scholarly journals Which News Moves the Euro Area Bond Market?

2009 ◽  
Vol 10 (1) ◽  
pp. 1-31 ◽  
Author(s):  
Magnus Andersson ◽  
Szabolcs Sebestyén ◽  
Lars Jul Overby
Keyword(s):  
Monetary Policy ◽  
Euro Area ◽  
Bond Market ◽  
Bond Markets ◽  
Market Responses ◽  
Macroeconomic Announcements ◽  
Bond Futures

AbstractThis paper explores a long dataset (1999-2005) of intraday prices on German long-term bond futures and examines market responses to major macroeconomic announcements and ECB monetary policy releases. German bond markets tend to react more strongly to the surprise component in US macro releases compared with aggregated and national euro area and UK releases, and the strength of those reactions to US releases has increased over the period considered. We also document that the numbers of German unemployed workers consistently have been known to investors before official releases.

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