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

Ilona Skibińska-Fabrowska

Abstract


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 significant 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.


Keywords


monetary policy; unconventional instruments of monetary policy; European Central Bank; financial crisis; quantitative easing

Full Text:

PDF

References


Altavilla, C., Carboni, G., & Motto, R. (2015). Asset purchase programmes and financial markets: Lessons from the euro area. European Central Bank Working Paper, 1864. Frankfurt: European Central Bank.

Andrade, P., Breckenfelder, J., de Fiore, F., Karadi, P., & Tristani O. (2016). The ECB’s asset purchase programme: An early assessment. European Central Bank Working Paper, 1956. Frankfurt: European Central Bank.

Bednarczyk, J. (2015). Polityka pieniężna Europejskiego Banku Centralnego a zagrożenie deflacją w Unii Europejskiej. Kwartalnik Kolegium Ekonomiczno-Społecznego. Studia i Prace, Szkoła Główna Handlowa, 3(1), 89–102.

Blattner, T.S., & Joyce, M.A.S. (2016). Net debt supply shocks in the euro area and the implications for QE. European Central Bank Working Paper, 1957. Frankfurt: European Central Bank.

Borio, C., & Disyatat, P. (2009). Unconventional monetary policy: An appraisal. BIS Working Paper, 292. Basel: Bank for International Settlements.

Bukowski, S.I., & Bukowska, J.E. (2017). Zmiany podaży pieniądza, stóp procentowych i kursu walutowego a wzrost gospodarczy w obszarze euro. Acta Universitatis Lodziensis. Folia Oeconomica, 6(332), 159–173.

De Santis, R.A., & Holm-Hadulla, F. (2017). Flow effects of central bank asset purchases on euro area sovereign bond yields: evidence from a natural experiment. European Central Bank Working Paper, 2052. Frankfurt: European Central Bank.

Ehrman, M., Blinder, A., de Haan, J., & Jansen, D.-J. (2017). What will monetary policy look like after the crisis? Research Bulletin, 39. Frankfurt: European Central Bank.

European Central Bank. (2018). The use of the eurosystem’s monetary policy instruments and its monetary policy implementation framework Q2 2016–Q4 2017. Occasional Paper Series, 209. Frankfurt: European Central Bank.

European Central Bank. (2019a). Key ECB Interest Rates. Frankfurt: European Central Bank. Retrieved from https://www.ecb.europa.eu/stats/policy_and_exchange_rates/key_ecb_interest_rates/html/index.en.html [access: 1.02.2019].

European Central Bank. (2019b.) Eurosystem Policy and Exchange Rate. Frankfurt: European Central Bank. Retrieved from http://sdw.ecb.europa.eu/browse.do?node=9691109 [access: 11.02.2019].

Eurostat. (2019). HICP Infltion Rate. Luxembourg: Eurostat. Retrieved from https://ec.europa.eu/eurostat/tgm/table.do?tab=table&init=1&plugin=1&pcode=tec00118&language=en [access: 1.02.2019].

Fawley, B.W., & Neely, Ch.J. (2013). Four stories of quantitative easing. Federal Reserve Bank of St. Louis Review, 95(1), 51–88. Retrieved from http://research.stlouisfed.org/publications/review/13/01/Fawley.pdf [access:31.01.2019].

Gambetti, L., & Musso, A. (2017). The macroeconomic impact of the ECB’s expanded asset purchase programme (APP). European Central Bank Working Paper, 2075. Frankfurt: European Central Bank.

Hohberger, S., Priftis, R., & Vogel, L. (2018). The macroeconomic effects of quantitative easing in the euro area: Evidence from an estimated DSGE Mode. Bank of Canada Staff Working Paper, 2018-11. Ottawa: Bank of Canada.

Jackson, H. (2015). The international experience with negative policy rates. Bank of Canada Working Papers, 2015-13. Ottawa: Bank of Canada.

Janus, J. (2013). Niekonwencjonalna polityka pieniężna głównych banków centralnych – diagnoza korzyści i zagrożeń. Retrieved from http://www.pte.pl/kongres/referaty/Janus%20Jakub/Janus%20Jakub%20-%20NIEKONWENCJONALNA%20POLITyKA%20PIENI%C4%98%C5%BBNA%20G%C5%81%C3%93WNyCh%20BANK%C3%93W%20CENTRALNyCh%20%E2%80%93%20DIAGNOZA%20KORZy%C5%9ACI%20I%20ZAGRO%C5%BBE%C5%83.pdf [access: 10.01.2019].

Joyce, M., Tong, M., & Woods, R. (2011). The United Kingdom’s quantitative easing policy: Design, operation and impact. Bank of England Quarterly Bulletin, 2011(Q3), 200–213.

Kapuściński, M., & Pietryka, I. (2019). The impact of the excess reserves of the banking sector on interest rates and money supply in Poland. National Bank of Poland Working Papers, 300. Warsaw: National Bank of Poland.

Łasak, P. (2017). Mechanizmy oddziaływania i zagrożenia polityki luzowania ilościowego. Studia Ekonomiczne. Zeszyty Naukowe Uniwersytetu Ekonomicznego w Katowicach, 319, 104–115.

Mersch, Y. (2019). The Changing Role of Central Banking. Retrieved from https://www.ecb.europa.eu/press/key/date/2019/html/ecb.sp190204~fc6f950d31.en.html [access: 5.02.2019].

Mouabbi, S., & Sahus, J.-G. (2019). Evaluating the macroeconomic effects of the ECB’s unconventional monetary policies. Journal of Money, Credit and Banking, 4(51), 831–858. doi:10.1111/jmcb.12628

National Bank of Poland. (2018a). Raport o inflcji. Listopad 2018 r. Warszawa: NBP.

National Bank of Poland. (2018b). Raport roczny 2017. Płynność sektora bankowego. Instrumenty polityki pieniężnej NBP. Warszawa: NBP.

National Bank of Poland. (2019). Raport o inflacji. Warszawa: NBP.

OECD.Stat. (2019). Quarterly National Accounts: Quarterly growth rates of real GDP, change over same quarter, previous year. Paris: OECD. Retrieved from https://stats.oecd.org/index.aspx?queryid=350 [access: 2.02.2019].

Przybylska-Kapuścińska, W., & Szyszko, M. (2017). Współczesna polityka pieniężna. Perspektywa XXI wieku. Warszawa: Difin.

Pyka, I., & Nocoń, A. (2017). Normalizacja polityki monetarnej – innowacja czy powrót do klasycznej polityki banków centralnych. Zeszyty Naukowe Uniwersytetu Ekonomicznego w Katowicach, 346, 95–111.

Raczko, A. (2017). Elementy niekonwencjonalnej polityki pieniężnej Europejskiego Banku Centralnego. Studia i Materiały Wydziału Zarządzania Uniwersytetu Warszawskiego, 2(25), 75–83.

Schäfer, D., Stephan, A., & Hoang, K.T. (2017). The cost channel effect of monetary transmission: how effective is the ECB’s low interest rate policy for increasing inflation? Discussion Paper of DIW Berlin, 1654.

Tymoczko, D. (2010). Działania banków centralnych w czasie kryzysu. In: E. Balcerowicz (red.), Banki centralne w zarządzaniu kryzysem finansowym. Strategie wyjścia. Zeszyty BRE Bank – CASE, 111.




DOI: http://dx.doi.org/10.17951/h.2019.53.3.43-52
Date of publication: 2019-11-28 14:18:16
Date of submission: 2019-05-06 19:02:41


Statistics


Total abstract view - 1530
Downloads (from 2020-06-17) - PDF - 0

Indicators



Refbacks

  • There are currently no refbacks.


Copyright (c) 2019 ilona ewa skibińska-fabrowska

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.