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The use of the Eurosystem’s monetary policy instruments and its monetary policy implementation framework Q2 2016 - Q4 2017

Author

Listed:
  • Bock, Alexander
  • Cajnko, Miha
  • Daskalova, Svetla
  • Durka, Iwona
  • Gallagher, Brian
  • Grandia, Roel
  • Haberbush, Glenn
  • Kamps, Annette
  • Luskin, Alaoishe
  • Russo, Michelina Lo
  • Lozoya, Mª Carmen Castillo
  • Pasqualone, Filippo
  • Thomas, Michael
  • Vasconcelos, Isabel

Abstract

This paper provides a comprehensive overview of the use of the Eurosystem’s monetary policy instruments and the operational framework from the second quarter of 2016 to the last quarter of 2017. It reviews the context of Eurosystem market operations; the design and operation of the Eurosystem’s counterparty and collateral frameworks; the fulfilment of minimum reserve requirements; participation in credit operations and recourse to standing facilities; and the conduct of outright asset purchase programmes. The paper also discusses the impact of monetary policy implementation on the Eurosystem's balance sheet, excess liquidity and money market liquidity conditions. JEL Classification: D02, E43, E58, E65, G01

Suggested Citation

  • Bock, Alexander & Cajnko, Miha & Daskalova, Svetla & Durka, Iwona & Gallagher, Brian & Grandia, Roel & Haberbush, Glenn & Kamps, Annette & Luskin, Alaoishe & Russo, Michelina Lo & Lozoya, Mª Carmen Ca, 2018. "The use of the Eurosystem’s monetary policy instruments and its monetary policy implementation framework Q2 2016 - Q4 2017," Occasional Paper Series 209, European Central Bank.
    • Handle: RePEc:ecb:ecbops:2018209
    Note: 2992534
    as

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    File URL: https://www.ecb.europa.eu//pub/pdf/scpops/ecb.op209.en.pdf
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    References listed on IDEAS

    as
    1. Baldo, Luca & Hallinger, Benoît & Helmus, Caspar & Herrala, Niko & Martins, Débora & Mohing, Felix & Petroulakis, Filippos & Resinek, Marc & Vergote, Olivier & Usciati, Benoît & Wang, Yizhou, 2017. "The distribution of excess liquidity in the euro area," Occasional Paper Series 200, European Central Bank.
    2. Bindseil, Ulrich & Corsi, Marco & Sahel, Benjamin & Visser, Ad, 2017. "The Eurosystem collateral framework explained," Occasional Paper Series 189, European Central Bank.
    3. Eser, Fabian & Carmona Amaro, Marta & Iacobelli, Stefano & Rubens, Marc, 2012. "The use of the Eurosystem's monetary policy instruments and operational framework since 2009," Occasional Paper Series 135, European Central Bank.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    central bank collateral framework; central bank counterparty framework; central bank liquidity management; monetary policy implementation; non-standard monetary policy measures;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
    • G01 - Financial Economics - - General - - - Financial Crises

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