The ECB's Asset Purchase Programmes: Experience and Future Perspectives

18-09-2020

In response to the unprecedented shock brought by the COVID-19 pandemic, the European Central Bank (ECB) has deployed a massive package of monetary policy stimulus to safeguard the monetary policy transmission mechanism and keep the euro area economy afloat. As part of this package, the ECB has stepped up its asset purchases, including with the introduction of the new pandemic emergency purchase programme (PEPP) with an envelope of EUR 1.35 trillion by June 2021. Over the years, the impact and the side effects of the non-standard asset purchase programmes have been widely debated. Should they remain as part of the ECB’s toolkit in the future, considering that inflation is expected to stay low and that interest rates are in negative territory? Six papers were prepared for the ECON Committee by the Monetary Expert Panel, presenting empirical evidence and discussing future perspectives of the ECB’s asset purchase programmes. This publication is prepared by Policy Department for Economic, Scientific and Quality of Life Policies for the Committee on Economic and Monetary Affairs (ECON), ahead of the Monetary Dialogue with ECB President Lagarde on 28 September 2020.

In response to the unprecedented shock brought by the COVID-19 pandemic, the European Central Bank (ECB) has deployed a massive package of monetary policy stimulus to safeguard the monetary policy transmission mechanism and keep the euro area economy afloat. As part of this package, the ECB has stepped up its asset purchases, including with the introduction of the new pandemic emergency purchase programme (PEPP) with an envelope of EUR 1.35 trillion by June 2021. Over the years, the impact and the side effects of the non-standard asset purchase programmes have been widely debated. Should they remain as part of the ECB’s toolkit in the future, considering that inflation is expected to stay low and that interest rates are in negative territory? Six papers were prepared for the ECON Committee by the Monetary Expert Panel, presenting empirical evidence and discussing future perspectives of the ECB’s asset purchase programmes. This publication is prepared by Policy Department for Economic, Scientific and Quality of Life Policies for the Committee on Economic and Monetary Affairs (ECON), ahead of the Monetary Dialogue with ECB President Lagarde on 28 September 2020.

Auteur externe

Pierre L. SIKLOS, Christophe BLOT, Jérôme CREEL, Paul HUBERT, Luigi BONATTI, Andrea FRACASSO, Roberto TAMBORINI, Joscha BECKMANN, Salomon FIEDLER, Klaus-Jürgen GERN, Stefan KOOTHS, Josefine QUAST, Maik WOLTERS, Angela CAPOLONGO, Daniel GROS, Pierpaolo BENIGNO, Paolo CANOFARI, Giovanni DI BARTOLOMEO, Marcello MESSORI