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

Download PDF

Share this article:

or copy the following link:

The link was added to your clipboard!

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

Download PDF

Share this article:

or copy the following link:

The link was added to your clipboard!

More on the topic

Read the article
Low for Long or Higher for Longer?
Markus Demary / Michael Hüther IW-Report No. 12 8. April 2021

Global Inflation: Low for Long or Higher for Longer?

Inflation has started to increase, and the return of inflation comes at a time in which economies begin to recover from pandemic-induced and lockdown-induced recessions. This raises questions about how much and how long inflation will go up as well as about ...

IW

Read the article
Markus Demary / Michael Hüther IW-Kurzbericht No. 122 9. December 2020

ECB Strategy Review - The New Pillars: Communication and Climate Change

The European Central Bank (ECB) is reviewing its strategy. Key pillars are its communication and how monetary policy should address climate change. We advise the ECB to strengthen its communication especially with social groups unfamiliar with monetary policy. ...

IW

More about this topic

Content element with id 8880 Content element with id 9713