SVARs and unconventional monetary policy

Macroeconomic Effects of Unconventional Monetary Policy in the Euro Area

JEL codes: 
C32, E30, E44, E51, E52
Version Date: 
Apr 2011

I estimate the dynamic effects of respectively traditional interest rate
innovations and unconventional monetary policy actions on the Euro area
economy. The results show that the Eurosystem can stimulate the economy
beyond the policy rate by increasing the size of its balance sheet. The ultimate
consequences on output and consumer prices are however more sluggish