Język Polski
English
Published
:
2013-06-30
Liquidity Provision by the European Central Bank in 2009-2012
Tadeusz Miruszewski
Abstract
After 2008, as the financial crisis in the Euro area worsened, the European Central Bank (ECB) deployed a number of non-standard procedures and regulatory liquidity management instruments. In 2010 and the following years, traditional instruments and procedures of liquidity provision continued to evolve: we not only saw the "emergency liquidity assistance" facilities addressed to the banking sector, but also the Longer-Term Refinancing Operations (LTRO), the Covered Bond Purchase Programme (CBPP) and another program targeted at securities markets (Securities Markets Programme - SMP). In addition to stabilizing anti-deflationary and antirecession effects, this model of structural liquidity regulation ensures effective transmission of monetary policy impulses while maintaining low interest rates (which otherwise leads to a hypothetical increase in demand for a currency), that is, under conditions traditionally identified with a "liquidity trap".(original abstract)Keywords:
Financial liquidity, Banking sector, Monetary Policy of the ECB, Liquidity trapDetails
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Miruszewski, T. (2013). Liquidity Provision by the European Central Bank in 2009-2012. Zeszyty Naukowe Wyższej Szkoły Bankowej W Poznaniu, 48(3). Retrieved from https://journals.wsb.poznan.pl/index.php/znwsb/article/view/1863