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The impact on the Polish economy of the Structural Open Market Operations programme conducted by NBP

Author

Listed:
  • Katarzyna Hertel

    (National Bank of Poland)

  • Marcin Humanicki

    (National Bank of Poland)

  • Marcin Kitala

    (National Bank of Poland)

  • Tomasz Kleszcz

    (National Bank of Poland)

  • Kamila Kuziemska-Pawlak

    (National Bank of Poland)

  • Jakub Mućk

    (National Bank of Poland)

  • Bartosz Rybaczyk

    (National Bank of Poland)

  • Maciej Stefański

    (National Bank of Poland)

Abstract

The paper presents estimates of the macroeconomic effects of the Structural Open Market Operations (SOMO) programme implemented by NBP in 2020 in response to the COVID-19 pandemic shock. In order to assess the ex-ante impact of bond purchases by the central bank on the real economy and prices in Poland, (i) the impact of unconventional monetary policy on financing conditions, identified indirectly using the shadow policy rate concept, and (ii) the impact of the SOMO on the exchange rate of the Polish zloty against the euro were estimated. The results of the NECMOD model simulations indicate that the unconventional monetary policy conducted by NBP reduced the extent of the decline in GDP growth and inflation by 0.1 and 0.2 percentage points in 2020 and 0.5 percentage points each in 2021. At the same time, the macroeconomic impact of the SOMO was similar to the effect of the interest rate cuts in the first half of 2020.

Suggested Citation

  • Katarzyna Hertel & Marcin Humanicki & Marcin Kitala & Tomasz Kleszcz & Kamila Kuziemska-Pawlak & Jakub Mućk & Bartosz Rybaczyk & Maciej Stefański, 2022. "The impact on the Polish economy of the Structural Open Market Operations programme conducted by NBP," NBP Working Papers 343, Narodowy Bank Polski.
    • Handle: RePEc:nbp:nbpmis:343
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    Cited by:

    1. Stefański, Maciej, 2022. "Macroeconomic effects and transmission channels of quantitative easing," Economic Modelling, Elsevier, vol. 114(C).
    2. Bank for International Settlements, 2023. "Central bank asset purchases in response to the Covid-19 crisis," CGFS Papers, Bank for International Settlements, number 68, december.

    More about this item

    Keywords

    monetary policy; open market operations; COVID-19;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit

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