Implications for the Euro Area of Divergent Monetary Policy Stances by the Fed and the ECB. Monetary Dialogue 15 February 2016.

Please note: Each In-Depth Analysis is assigned a DOI (digital object identifier), which is a safe and long term way of ensuring a hyperlink to the full text of this report. However, when ESO creates this record, on occasion the DOI still has not been activated by the EU Bookshop. If you find the source url hyperlink does not work please use the alternative location hyperlink listed as a related url.Confronted with a different macroeconomic and financial environment, the ECB and the Fed monetary stances seem to be more and more on diverging paths. While the Fed has stopped its quantitative easing (QE) operations and has recently decided to raise the target range for the federal funds rate, the ECB is committed to extend the scope of its QE programme launched in March 2015 and does not intend to reverse its zero interest rate policy before 2017.

This compilation of notes requested by the European Parliament Committee on Economic and Monetary Affairs (ECON) for the February 2016 Monetary Dialogue provides an assessment of the main repercussions and risks for the euro area of potentially divergent monetary policies by the Fed and the ECB.

European Parliament: Directorate-General for Internal Policies of the Union: Publications available via the EU Bookshop http://bookshop.europa.eu/en/directorate-general-for-internal-policies-of-the-union-cbf.cKABstF7wAAAEjwYYY4e5K/

European Parliament: European Parliamentary Research Service: In-Depth Analysis, February 2016: Implications for the Euro Area of Divergent Monetary Policy Stances by the Fed and the ECB http://www.europarl.europa.eu/RegData/etudes/IDAN/2016/569993/IPOL_IDA(2016)569993_EN.pdf

Website: Board of Governors of the Federal Reserve Board http://www.federalreserve.gov/

Website: European Central Bank https://www.ecb.europa.eu/

ECB: Monetary policy https://www.ecb.europa.eu/mopo/html/index.en.html

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