Quantitative Easing in the Eurozone
(2017) EKHM52 20171Department of Economic History
- Abstract
- In response to the outbreak Global Financial Crisis and European Debt Crisis, major central banks took very accommodative monetary policy stances. By slashing interest rates to the zero-lower bound and introducing unconventional monetary policy in the form of quantitative easing they hoped to boost aggregate demand and inflation. This paper investigates the workings of QE, money creation, potential macroeconomic- and other side-effects- of the ECB’s QE programme: “the expanded asset purchasing programme”, and its transmission channels. Though it seems that QE mainly works through portfolio rebalancing, limited evidence has been found on real macroeconomic effects and negative side-effects such as asset bubble inflation. This puts the... (More)
- In response to the outbreak Global Financial Crisis and European Debt Crisis, major central banks took very accommodative monetary policy stances. By slashing interest rates to the zero-lower bound and introducing unconventional monetary policy in the form of quantitative easing they hoped to boost aggregate demand and inflation. This paper investigates the workings of QE, money creation, potential macroeconomic- and other side-effects- of the ECB’s QE programme: “the expanded asset purchasing programme”, and its transmission channels. Though it seems that QE mainly works through portfolio rebalancing, limited evidence has been found on real macroeconomic effects and negative side-effects such as asset bubble inflation. This puts the effectiveness of the ECB’s APP into question. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/8917060
- author
- Loonstra, Marco John Jan LU
- supervisor
-
- Anders Ögren LU
- organization
- course
- EKHM52 20171
- year
- 2017
- type
- H2 - Master's Degree (Two Years)
- subject
- keywords
- money creation, unconventional monetary policy, Eurozone, macroeconomy
- language
- English
- id
- 8917060
- date added to LUP
- 2017-06-21 08:44:03
- date last changed
- 2017-06-21 08:44:03
@misc{8917060, abstract = {{In response to the outbreak Global Financial Crisis and European Debt Crisis, major central banks took very accommodative monetary policy stances. By slashing interest rates to the zero-lower bound and introducing unconventional monetary policy in the form of quantitative easing they hoped to boost aggregate demand and inflation. This paper investigates the workings of QE, money creation, potential macroeconomic- and other side-effects- of the ECB’s QE programme: “the expanded asset purchasing programme”, and its transmission channels. Though it seems that QE mainly works through portfolio rebalancing, limited evidence has been found on real macroeconomic effects and negative side-effects such as asset bubble inflation. This puts the effectiveness of the ECB’s APP into question.}}, author = {{Loonstra, Marco John Jan}}, language = {{eng}}, note = {{Student Paper}}, title = {{Quantitative Easing in the Eurozone}}, year = {{2017}}, }