ECB’S Unconventional Monetary Policy. Tapering or Extension? Options on the table

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Series Details November 2016
Publication Date November 2016
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This briefing is one in a series of 'Implementation Appraisals' on the operation of existing EU legislation in practice. Each such briefing focuses on a specific EU law which is likely to be amended or reviewed, as foreseen in the European Commission's Annual Work Programme.

Implementation Appraisals aim to provide a succinct overview of material publicly available on the implementation, application and effectiveness of an EU law to date – drawing on available input from the EU institutions and external organisations. They are provided to assist parliamentary committees in their consideration of the new proposals, once tabled.In advance of the decision of the European Central Bank (ECB), expected on 8 December 2016, regarding the Asset Purchase Programme (APP, often referred as Quantitative Easing – QE) this note provides an insight to possible policy options for the ECB. It also looks at the ECB’s options to address the scarcity of eligible assets; if not addressed, scarcity of eligible assets could put at risk the proper functioning of the APP.

Authors: Risto Nieminen and Stanislas de Finance with Mattia Osvaldo Picarelli

Source Link Link to Main Source http://www.europarl.europa.eu/RegData/etudes/BRIE/2016/581389/EPRS_BRI(2016)581389_EN.pdf
Related Links
EP: EPRS: Briefing: Implementation Appraisal: Ex-ante Impact Assessment http://www.europarl.europa.eu/thinktank/en/search.html?policyAreas=EXIMAS
ESO: Background information: Why Has ECB’s Very Accommodative Monetary Policy Not Yet Triggered a Rebound of Investment? http://www.europeansources.info/record/why-has-ecbs-very-accommodative-monetary-policy-not-yet-triggered-a-rebound-of-investment/
ESO: Background information: Monetary policy decisions, 10 March 2016 / ECB adds corporate sector purchase programme (CSPP) to the asset purchase programme (APP) and announces changes to APP / ECB announces new series of targeted longer-term refinancing operations (TLTRO II) http://www.europeansources.info/record/monetary-policy-decisions-10-march-2016-ecb-adds-corporate-sector-purchase-programme-cspp-to-the-asset-purchase-programme-app-and-announces-changes-to-app-ecb-announces-new-series-of-targeted/
EuVisions: Thematic Briefings, No.3, 2016 (09.12.16): Quantitative easing (QE). http://www.euvisions.eu/thematic-briefing-quantitative-easing/

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