MACRO ECONOMIC EFFECTS OF THE EUROPEAN CENTRAL BANK'S ASSET PURCHASE PROGRAMS
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Date
2021-12
Journal Title
Journal ISSN
Volume Title
Publisher
Nevşehir Hacı Bektaş Veli Üniversitesi SBE Dergisi
Abstract
The fact that the effects of the European Debt
Crisis in the Eurozone countries in the period
2008/2009 were much greater than the previous
financial and economic crises, forced the
European Central Bank to take very different
measures than the traditional monetary policies
followed by increasing the amount of money
and lowering interest rates. In this context, the
European Central Bank tried to increase the
efficiency of the monetary transmission
mechanism by announcing asset purchase
programs and to compensate for the negative
consequences of the financial crisis on the real
economy. In the study, the effects of asset
purchase programs on the variables of average
inflation, GDP growth, interest rates,
unemployment, and employment rates in the
Eurozone member countries for the period
2009:5-2020:11 were investigated.
Accordingly, it was observed that the biggest
macroeconomic effects of the European Central
Bank's asset purchase programs in the
Eurozone were unemployment rates,
employment rates, GDP, interest rates and
inflation rates in the long run, respectively. It
was found that the unconventional monetary
policies implemented by the European Central
Bank through asset purchase programs were
effective in reducing long-term unemployment
rates and increasing employment rates and
GDP in the Eurozone.
Description
Keywords
European Central Bank Asset Purchase Programs, Unconventional Monetary Policy Instruments, Debt Crisis, Financial Stability