Document Type
Case Study
Case Series
European Central Bank: Tools and Policy Actions
JEL Codes
G01, G28
Abstract
Beginning in August 2007, the European Central Bank (ECB) used standard and non-standard monetary policies as the global financial markets progressed from initial turmoil to a widespread sovereign debt crisis. This case describes the key features of the ECB’s asset purchase programs throughout the Global Financial Crisis and subsequent European sovereign debt crisis. These programs include the Covered Bond Purchase Programs (CBPP1, CBPP2, CBPP3), Securities Markets Program (SMP), Outright Monetary Transactions (OMT), Asset-backed Securities Purchase Program (ABSPP) and the Public Sector Purchase Program (PSPP).
In combating the crises, the ECB designed various innovative programs which it successively employed as the crises progressed. While some programs proved highly effective, others were less so. A major program, the OMT, was challenged in court and ultimately found to be within the ECB’s legal operating framework.
Recommended Citation
Ross, Chase P.; Wiggins, Rosalind Z.; and Metrick, Andrew
(2019)
"European Central Bank Tools and Policy Actions B: Asset Purchase Programs,"
Journal of Financial Crises: Vol. 1
:
Iss. 3, 82-112.
Available at:
https://elischolar.library.yale.edu/journal-of-financial-crises/vol1/iss3/6
Date Revised
2019-11-11
Included in
Administrative Law Commons, Banking and Finance Law Commons, Economic Policy Commons, European Law Commons, International Economics Commons, International Relations Commons, Macroeconomics Commons, Political Economy Commons, Public Policy Commons, Transnational Law Commons