The European central bank quantitative policy and its consistency with the demand for liquidity
The European central bank quantitative policy and its consistency with the demand for liquidity
Author(s): Sviatlana Hlebik, Giovanni VergaSubject(s): Business Economy / Management, Economic policy, Transformation Period (1990 - 2010), EU-Accession / EU-DEvelopment
Published by: Editura Universităţii »Alexandru Ioan Cuza« din Iaşi
Keywords: European Central Bank; financial crisis; liquidity supply; liquidity demand;
Summary/Abstract: In 2008 the European Central Bank added a new quantitative policy strategy to its traditional control of the interest rates. This new policy, sometimes called “enhanced credit support”, consists of fully satisfying the demand for liquidity of banks, with the European Central Bank deciding only the timing and characteristics of its interventions. This study analyses the market conditions in which these measures have been taken and their consistency with the demand for liquidity by the banking system. Measures in favour of the sovereign debt of PIIGS countries are also considered.
Journal: Analele Ştiinţifice ale Universităţii »Alexandru Ioan Cuza« din Iaşi. Ştiinţe economice
- Issue Year: 62/2015
- Issue No: 3
- Page Range: 425-451
- Page Count: 27
- Language: English