ECB's Quantitative Easing - What Effects, Through Which Channels?
|Author:||Mgr. Daniel Husek|
|Year:||2016 - summer|
|Leaders:|| doc. Mgr. Tomáš Holub Ph.D.
|Work type:|| Economic Theory
|Awards and prizes:|
|Abstract:||The paper analyzes the wide-economy impacts of the European Central Bank Expanded Asset
Purchase Programme (ECB EAPP). The paper investigates the effects of the balance sheet
change as well as the latent nature of unconventional policy tools and analyzes the effects by
two distinct models, the Structural Vector Autoregressive (S-VAR) and Factor-Augmented
VAR (FA-VAR). The paper further discusses the transmission channels of the monetary
policy. The paper finds that the effect on the economy is materialized. The paper shows that
the major channel of ECB unconventional policies on the real economy is driven by the
response of nominal exchange rate and decline of interest rates.