The European Central Bank: A Bank or a Monetary Policy Rule

ZusammenfassungDie EZB sollte der Versuchung widerstehen, die Deflationsgefahr in der Eurozone durch zusätzliche Varianten unkonventioneller Geldpolitik (z.B. „Quantitative Easing“) zu bekämpfen. Was in den USA oder in Großbritannien geklappt haben mag, wird in der Eurozone nicht funktionieren. Es besteht gar die Gefahr einer Deflationsspirale, wie dieser Beitrag zeigt. Eingebettet werden die Argumente in die aktuelle Debatte um den „zu starken“ Euro.

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Unconventional monetary policy of the European Central Bank: A brief recapitulation

Annales Universitatis Mariae Curie-Skłodowska sectio H Oeconomia ◽

10.17951/h.2019.53.3.43-52 ◽

2019 ◽

Vol 53 (3) ◽

pp. 43

Author(s):

Ilona Skibińska-Fabrowska

Keyword(s):

Economic Growth ◽

Monetary Policy ◽

Central Bank ◽

Economic Crisis ◽

Financial Market ◽

European Central Bank ◽

Central Banks ◽

Unconventional Monetary Policy ◽

European Central ◽

National Bank

<p>The financial and economic crisis that has hit many economies in recent years has significantly increased the activity of central banks. After using the standard instruments of conducting monetary policy, in view of the obstruction of monetary impulse transmission channels, they reached for non-standard instruments. Among them, asset purchase programs played a signifciant role. The European Central Bank (ECB) launched the largest asset purchase programme (APP) of this type in 2014 and expired in December 2018. The aim of the undertaken activities was to improve the situation on the financial market and stimulate economic growth. The article reviews the literature and results of research on the effects of the program and indicates the possibility of using the ECB’s experience in conducting monetary policy by the National Bank of Poland.</p>

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Comparison of the Approach of the Czech National Bank and the European Central Bank to the Effects of the Global Financial Crisis

10.52950/es.2021.10.2.002 ◽

2021 ◽

Vol 10 (2) ◽

pp. 18-46

Author(s):

Andrea Cecrdlova

Keyword(s):

Monetary Policy ◽

Interest Rate ◽

Financial Crisis ◽

Central Bank ◽

European Central Bank ◽

Global Financial Crisis ◽

Central Banks ◽

European Central ◽

National Bank ◽

The Global Financial Crisis

The latest global crisis, which fully erupted in 2008, can have a significant impact on central banks credibility in the long run. During the last crisis, monetary authorities encountered zero interest rate levels and, as a result, started to use non-standard monetary policy instruments. The Czech National Bank decided to use a less standard instrument in November 2013, when it started to intervene on the foreign exchange market in order to keep the Czech currency at level 27 CZK / EUR. However, the European Central Bank also adopted a non-standard instrument, when chose a path of quantitative easing in 2015 in order to support the euro area economy by purchasing financial assets. The question remains whether the approach of Czech National Bank or the approach of European Central Bank in the crisis and post-crisis period was a more appropriate alternative. With the passage of time from the global financial crisis, it is already possible to compare the approaches of these two central banks and at least partially assess what approach was more appropriate under the given conditions. When comparing the central banks approaches to the crisis, the Czech National Bank was better, both in terms of the rate of interest rate cuts and the resulting inflation with regard to the choice of a non-standard monetary policy instrument. The recent financial crisis has revealed the application of moral hazard in practice, both on behalf of the European Central Bank and the Czech National Bank, which may have a significant impact on their credibility and independence in the coming years.

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Causes of The Outbreak of the Eurozone Crises: The Role of the Usa and the European Central Bank Monetary Policy

e-Finanse ◽

10.1515/fiqf-2016-0114 ◽

2015 ◽

Vol 11 (2) ◽

pp. 47-63

Author(s):

Natalia Białek

Keyword(s):

Monetary Policy ◽

Central Bank ◽

Interest Rates ◽

European Central Bank ◽

Institutional Design ◽

Global Financial Crisis ◽

European Central ◽

Low Interest Rates ◽

The Usa ◽

The U.S

Abstract This paper argues that the loose monetary policy of two of the world’s most important financial institutions-the U.S. Federal Reserve Board and the European Central Bank-were ultimately responsible for the outburst of global financial crisis of 2008-09. Unusually low interest rates in 2001- 05 compelled investors to engage in high risk endeavors. It also encouraged some governments to finance excessive domestic consumption with foreign loans. Emerging financial bubbles burst first in mortgage markets in the U.S. and subsequently spread to other countries. The paper also reviews other causes of the crisis as discussed in literature. Some of them relate directly to weaknesses inherent in the institutional design of the European Monetary Union (EMU) while others are unique to members of the EMU. It is rather striking that recommended remedies tend not to take into account the policies of the European Central Bank.

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Análisis de la integración y dependencia de las políticas monetarias de la Unión Europea

Pecvnia Revista de la Facultad de Ciencias Económicas y Empresariales Universidad de León ◽

10.18002/pec.v0i2011.752 ◽

2013 ◽

pp. 47

Author(s):

María del Carmen González Velasco ◽

Roque Brinckmann

Keyword(s):

Monetary Policy ◽

Central Bank ◽

Empirical Evidence ◽

European Central Bank ◽

Central Banks ◽

Uncovered Interest Parity ◽

European Central ◽

Long Run ◽

Bank Of England ◽

Interest Parity

En este artículo se efectúa un análisis de la integración y dependencia de las políticas monetarias de la Unión Europea y, en concreto, de las políticas monetarias de la Unión Económica yMonetaria y de la zona no euro para el periodo comprendido entre Enero de 1999 y Septiembre 2009. Se aplica la metodología de la cointegración de Engle y Granger (1987) y de Johansen(1988) para contrastar la hipótesis de la paridad de tipos de interés no cubierta y se llega a la conclusión de que ambas políticas están cointegradas porque mantienen una relación de equilibrio a largo plazo. También se deduce una dependencia de la política del Banco de Inglaterra de la política del Banco Central Europeo, lo que confirma la importancia y el liderazgo de la Unión Económica y Monetaria.<br /><br />This study is to investigate the long-run relationship and dependence between the UME´s monetary policy and non-euro zone´s monetary policy for the period from January 4, 1999 to September 30, 2009. We use cointegration methodology to test the Uncovered Interest Parity Hypothesis and the results indicate a long-run cointegration and empirical evidence testifies a leader-follower pattern between the two central banks. According to this pattern, the Bank of England does follow the European Central Bank.

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