SVARs and unconventional monetary policy

Macroeconomic Effects of Unconventional Monetary Policy in the Euro Area

JEL code(s)	C32 Multiple or Simultaneous Equation Models: Time-Series Models E30 Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data) E44 Financial Markets and the Macroeconomy E51 Money Supply; Credit; Money Multipliers E52 Monetary Policy
Keywords	SVARs and unconventional monetary policy
Series Number:	CEPR/EABCN No. 59/2011
Authors:	Gert Peersman
Date published:	April 18, 2011
Abstract:	I estimate the dynamic effects of respectively traditional interest rate innovations and unconventional monetary policy actions on the Euro area economy. The results show that the Eurosystem can stimulate the economy beyond the policy rate by increasing the size of its balance sheet. The ultimate consequences on output and consumer prices are however more sluggish compared to interest rate innovations. Furthermore, the transmission mechanism via financial institutions - very likely the risk-taking channel - turns out to be different.
Paper:	Paper not available.