The Impact of European Central Bank Operations upon Monetary Aggregates of the Eurozone
The Impact of European Central Bank Operations upon Monetary Aggregates of the Eurozone

Summary/Abstract: The European Central Bank is central bank of the eurozone. ECB represents the top subject of the European System of Central Banks as the monetary authority of Economic and Monetary Union in Europe. The ECB's monetary analysis is based on the fact that money supply growth and inflation are linked with each other. The paper quantifies the impact of the ECB operations upon monetary aggregates M2 and M3. Selected determinants of the analysis were ECB operations as - marginal lending facility, interest rate on marginal lending facilities, deposit facility, main refinancing operations, minimum reserves system and debt security issued. The monthly ECB data for the period from January 2016 to June 2018 were examined by using a linear regression analysis. The analysis confirmed the hypothesis that the main refinancing operations are statistically significant for monetary aggregates M2 and M3.

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