The ECB’s Non-Standard Monetary Policy Measures: The Role of Institutional Factors and Financial Structure

Cour-Thimann, Philippine; Winkler, Bernhard

doi:10.2139/ssrn.2239093

Cited by 45 publications

(5 citation statements)

References 14 publications

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“…Source: ECB's press conferences, press releases, and key speeches; Cross-checking with previous research was also carried out (Rogers et al 2014;Haitsma et al 2016;Martins et al 2019). For more details about the ECB's non-standard monetary policy measures in response to the financial and sovereign debt crisis see Cour-Thiman and Winkler (2013).…”

Section: Discussionmentioning

confidence: 99%

Eurozone Stock Market Reaction to Monetary Policy Interventions and Other Covariates

Petrakis

Lemonakis

Floros

et al. 2022

JRFM

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The joint effect of the global economic and sovereign debt crisis forced the European Central Bank (ECB) to apply conventional and non-standard expansionary monetary policy interventions in order to stabilize eurozone economies. We conducted a panel regression econometric analysis to study the influence of euro area monetary authority policy interventions, along with two main macroeconomic variables and a sentiment indicator, on market equity returns of eurozone countries for the period January 2007 to December 2017. Our findings suggest that conventional and non-standard monetary policy innovations had a positive lagged impact on equity returns of euro area monetary markets. More specifically, interest rate cuts evenly influenced market indices while non-conventional actions mainly affected core eurozone countries that were less affected by the crisis. We also document a strong negative relationship between inflation rates and market returns. In addition, the sentiment indicator produces positive effects on returns because it contains information that is not incorporated into other macro variables.

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Section: Discussionmentioning

confidence: 99%

Eurozone Stock Market Reaction to Monetary Policy Interventions and Other Covariates

Petrakis

Lemonakis

Floros

et al. 2022

JRFM

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“…The item measurement for the research constructs of interest was constructed based on established scales from prior studies and had been proven to be psychometrically sound (Churchill, 1979;Hair et al, 2006). Institutional characteristics (IC) were measured using three constructs: trade policy (Ali & Crain, 2001;Bailey, Goldstein, & Weingast, 1997;Knill, 2005;Mansfield, Milner, & Rosendorff, 2000;Scheve & Slaughter, 2001;Tinbergen, 1952), SME support policy (Gengatharen & Standing, 2005;Gibb, 1993;Hallberg, 2000;Smallbone & Welter, 2001;Zhu, Wittmann, & Peng, 2012), and foreign policy (Bailey et al, 1997;Cour-Thimann & Winkler, 2012;Ikenberry, 1988;Mankoff, 2009;Smith, 1996). The variable political characteristics (PC) were measured using the following three constructs: national representation (Castells, 2003;Kurunmäki, 2000;Rodan, 2016), cultural acceptance (Hofstede & Bond, 1988;Inglehart, 1997;Michelsen, 2001), and geographical suitability (Gallup et al, 1999;Lattimore, 1938).…”

Section: Methodsmentioning

confidence: 99%

The effect of home country characteristics on the internationalization of EMNEs: The moderating role of knowledge stock

Foroudi

Gupta

Patel

et al. 2023

International Business Review

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“…The precrash bubble saw households borrowing excessively in the United States, but also in some European countries. Figure 22.2 displays at the aggregate level the evolution of stocks of debt relative to GDP for different sectors (see also Cour-Thimann and Winkler, 2012), and reveals a different picture for the euro area than for the United States regarding the indebtedness of households in relation to other economic sectors. In the United States, the household sector 3 An exception is Germany where housing prices continue rising strongly.…”

Section: Origin and End Of Two Bubblesmentioning

confidence: 99%

From Fragmentation to Financial Integration in Europe

Enoch¹,

Everaert²,

Tressel³

et al. 2013

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Since the global financial crisis first erupted in 2008, the IMF has been intensively involved with member countries, as well as in regional and multilateral fora, seeking to address the crisis and restore financial stability. Much of this has necessarily been "fire-fighting"-taking emergency action to contain the crisis. At the same time, we have also had an eye to the future, working with our members and partners to improve the architecture of the international financial system-one that is better able to avoid crises and to handle crises when they occur.The global financial crisis did not originate in Europe, but it quickly spread there and has lingered there, exposing the fragilities and gaps in Europe's financial stability armor. In nearly all countries, the infrastructure for handling a financial crisis was inadequate or nonexistent, and the regional dimension in Europe has complicated crisis management even more.During this period, much has been achieved in Europe, using both conventional and novel approaches. The European Commission (EC) and the European Central Bank (ECB)-working with the IMF-have contained the crisis in a number of countries. The ECB's innovative interventions have significantly reduced the "tail risks" from the financial system. Meanwhile, important steps have been taken to create a new financial sector management infrastructure, initially at a national level, but increasingly at the level of the 27-member European Union (EU), and particularly among the 17 members that currently make up the euro area.Much, however, remains to be done. The vision of where the European partners wish to go is becoming increasingly clear, but the path taking us there is narrow, and in some parts not well defined. It is also not a path on which one wishes to linger. The sooner it takes to get to the destination, the sooner the financial system in Europe-and globally-will be safe.This book draws together recent work that the IMF has been undertaking to map out the path to safety. For over a decade, the IMF has conducted exercises at the national level, under its Financial Sector Assessment Program (FSAP), assessing vulnerabilities in a country's financial system and providing recommendations on how to address them. For the first time in late 2012, we conducted such an analysis for the EU as a whole, recognizing the region-wide dimension of financial stability in Europe.Given the ongoing crisis in the EU, this regional FSAP was particularly forward-looking, focusing substantially, although not exclusively, on the institutional infrastructure in the EU and, within it, the euro area. It thus provided an opportunity for the IMF to bring into the spotlight the importance of the ongoing architecture reforms in resolving this crisis. viii Foreword This book covers the major themes that emerged from that exercise, adds significant related work, and looks forward to the challenges ahead. I hope it will make a useful contribution to the current discussions on these issues in Europe and to the future shape of Europe's f...

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The ECB’s Non-Standard Monetary Policy Measures: The Role of Institutional Factors and Financial Structure

Abstract: This Working Paper should not be reported as representing the views of the European Central Bank (ECB). The views expressed are those of the authors and do not necessarily reflect those of the ECB.

Cited by 45 publications

References 14 publications

Eurozone Stock Market Reaction to Monetary Policy Interventions and Other Covariates

Eurozone Stock Market Reaction to Monetary Policy Interventions and Other Covariates

The effect of home country characteristics on the internationalization of EMNEs: The moderating role of knowledge stock

From Fragmentation to Financial Integration in Europe

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