1. Home
  2. Studies
  3. The Effectiveness of the ECB’s Liquidity Measures in Stimulating Credit Transactions in the Eurozone
Daniel Bendel IW-Trends No. 1 25. March 2015 The Effectiveness of the ECB’s Liquidity Measures in Stimulating Credit Transactions in the Eurozone
Download PDF
The Effectiveness of the ECB’s Liquidity Measures in Stimulating Credit Transactions in the Eurozone
Daniel Bendel IW-Trends No. 1 25. March 2015

The Effectiveness of the ECB’s Liquidity Measures in Stimulating Credit Transactions in the Eurozone

IW-Trends

German Economic Institute (IW) German Economic Institute (IW)

Since the global finance market crisis of 2007 the European Central Bank has implemented a number of extraordinary steps to expand liquidity. The Bank’s objective has been to reduce uncertainty in the interbank market and to stimulate stagnant bank lending to the real economy in the Eurozone. With the help of a TVP VAR model the author examines how the effect of Central Bank liquidity on European lending volumes has changed over time. The financial crisis disrupted the normal transmission mechanism for the credit volume of private households, companies and banks, and in its aftermath normal transmission was only resumed for the volume of bank lending. At present, an expansion of the Central Bank’s balance sheets is particularly stimulating the interbank market but is having no direct influence on the volume of borrowing in the real economy. Nevertheless, there may yet be a delayed transmission with a positive effect on the volume of private-sector lending.

Download PDF
The Effectiveness of the ECB’s Liquidity Measures in Stimulating Credit Transactions in the Eurozone
Daniel Bendel IW-Trends No. 1 25. March 2015

Daniel Bendel: Die Effektivität der EZB-Liquiditätsmaßnahmen zur Steigerung der Kreditgeschäfte im Euroraum

IW-Trends

German Economic Institute (IW) German Economic Institute (IW)

More on the topic

Read the article
A Macroeconomic Analysis of Wage-Price Spirals
Thomas Obst / Maximilian Stockhausen IW-Analyse No. 155 9. January 2024

A Macroeconomic Analysis of Wage-Price Spirals

The subject of this Analysis is the forms that wage-price spirals can take and how they influence macroeconomic stability and inflationary trends in Germany.

IW

Read the article
Markus Demary / Niklas Florian Taft IW-Report No. 31 26. May 2023

The Energy Dependence of Bank Loans

Russia's war against Ukraine has highlighted the vulnerability of the Federal Republic of Germany to Russian energy imports, especially natural gas.

IW

More about this topic

Content element with id 8880 Content element with id 9713