The Financial and Macroeconomic Effects of Security Market Programme, Long Term Refinancing Operation and Outright Monetary Transaction Announcements
The Financial and Macroeconomic Effects of Security Market Programme, Long Term Refinancing Operation and Outright Monetary Transaction Announcements

Summary/Abstract: The term Non-Conventional Monetary Policies, referred to the Central Banks, indicates the possibility that these may adopt intervention of an extraordinary nature. The motivation consists in the fact that conventional on which they had always based their interventions, pushing them towards these exceptional measures. This study evaluates the macroeconomic effects of three different Non-Conventional Monetary Policies on financial and bond market. Securities Market Programme (SMP), Long Term Refinancing Operation (LTRO) and Outright Monetary Transaction (OMT) represents the announcements of the European Central Bank (ECB) analyzed. It is shown that the markets examined (France, Germany, Spain and Italy) have a significant impact in terms of real activity, credit and prices, for the SMP and OMT announcement, whereas LTRO displays relatively muted results.

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