Are all Central Bank Asset Purchases the Same? Different Rationales, Different Effects - Archive ouverte HAL Access content directly
Preprints, Working Papers, ... Year : 2021

Are all Central Bank Asset Purchases the Same? Different Rationales, Different Effects

(1) , (1) , (1) , (2, 3)
1
2
3

Abstract

Does policymakers’ rationale for a given policy influence the impact of this policy? To answer this question, we exploit the unique setting provided by ECB asset purchase programs. PSPP and PEPP policies consist in purchases of essentially identical assets, but their objectives differ. The PSPP aimed to reduce deflationary risks, while the PEPP was announced in response to the pandemic-driven economic crisis to alleviate sovereign risks. We assess the effects of both policies on both objectives. We find that the PSPP positively affects inflation swaps while the PEPP negatively impacts sovereign spreads but much less evidence of the opposite pattern.
Fichier principal
Vignette du fichier
OFCEWP2021-29.pdf (1.32 Mo) Télécharger le fichier
Origin : Publisher files allowed on an open archive

Dates and versions

hal-03554141 , version 1 (08-03-2022)

Licence

Attribution - ShareAlike - CC BY 4.0

Identifiers

  • HAL Id : hal-03554141 , version 1

Cite

Christophe Blot, Caroline Bozou, Jérôme Creel, Paul Hubert. Are all Central Bank Asset Purchases the Same? Different Rationales, Different Effects. 2021. ⟨hal-03554141⟩
15 View
23 Download

Share

Gmail Facebook Twitter LinkedIn More