Sovereign spreads and unconventional monetary policy in the Euro area: A tale of three shocks

Unemployment in the Euro Area and Unconventional Monetary Policy Surprises

“…By contrast, in the core countries, the reduction is only minor. While we cannot draw a compelling inference about the driving forces behind our results -possible explanations could be the implementation of structural labor market reforms in the periphery countries (Eichhorst et al, 2017), or the effect of unconventional monetary policy to lower risk premiums on peripheral bonds (Altavilla et al, 2021;Fanelli and Marsi, 2022) -they show that the euro area labor markets were affected in different ways by unconventional monetary policy measures.…”