ECB News: June 2010

 

Archive

 
30/06/2010
Announcing 20100053 (LTRO,liquidity providing), for 91 days deadline 09:30, more
 
30/06/2010
20100052 (OT,liquidity absorbing):31865.9 mn EUR alloted (marginal 1%, weighted average 0.54%, 100% allotment at margin), more
 
30/06/2010
20100051 (MRO,liquidity providing):162912.4 mn EUR alloted (fixed 1%, 100% allotment at margin), more
 
30/06/2010
Press release Covered bond purchase programme completed, en
 
30/06/2010
Press release Eurosystem and GCC central banks and monetary agencies hold second high-level seminar, en
 
30/06/2010
Occasional paper no. 114 The impact of the global economic and financial crisis on central, eastern and south-eastern Europe: A stock-taking exercise , by Sándor Gardó and Reiner Martin, download
 
29/06/2010
Announcing 20100051 (MRO,liquidity providing), for 7 days deadline 09:30, more
 
28/06/2010
Fine-tuning operation, more
 
28/06/2010
Speech Gertrude Tumpel-Gugerell: Towards a safer financial system, en
 
28/06/2010
Monetary developments in the euro area, more
 
28/06/2010
Publication Letter from the ECB President to Mr Andreas Mölzer, Member of the European Parliament, regarding questions related to the governance of the euro area , download
 
25/06/2010
Other decisions Decisions taken by the Governing Council of the ECB (in addition to decisions setting interest rates), de . el . en . es . fi . fr . it . mt . nl . pt . sk . sl . sv
 
25/06/2010
No. 1218: Sectoral money demand and the great disinflation in the US, by Alessandro Calza, Andrea Zaghini, description, download
(JEL: E31, E41) Estimates of the welfare costs of inflation based on Bailey (1956) are typically computed using aggregate money demand models. Yet, the behavior of money demand may vary across sectors. Thus, the impact on welfare of inflation regime shifts may differ between households and firms. We specifically investigate the sectoral welfare implications of the shift from the Great Inflation to the present regime of low and stable inflation. For this purpose, we estimate different functional specifications of money demand for US households and non-financial firms using flow-of-fund data covering four decades. We find that the benefits were significant for both sectors.
 
25/06/2010
No. 1217: Fiscal policy and growth: do financial crises make a difference?, by Christina Kolerus, Hans Peter Grüner, António Afonso, description, download
(JEL: C23, E62, E44, F43, H50) In this paper we assess to what extent in the existence of a financial crisis, government spending can contribute to mitigate economic downturns in the short run and whether such impact differs in crisis and non crisis times. We use panel analysis for a set of OECD and non-OECD countries for the period 1981-2007. The fiscal multiplier for the full sample for instrumented regular and crisis spending is about 0.6-0.8 considering the sample average government spending share of GDP of about one third. Altogether, we cannot reject the hypothesis that crisis spending and regular spending have the same impact using a variation of controls, sub-samples and specifications.
 
25/06/2010
No. 1216: What lies beneath the euo's effect on financial integration? Currency risk, legal harmonization, or trade?, by Sebnem Kalemli-Ozcan, Elias Papaioannou, José-Luis Peydró, description, download
(JEL: F1, F3, G2, K0) Although recent research shows that the euro has spurred cross-border financial integration, the exact mechanisms remain unknown. We investigate the underlying channels of the euro’s effect on financial integration using data on bilateral banking linkages among twenty industrial countries in the past thirty years. We also construct a dataset that records the timing of legislative-regulatory harmonization policies in financial services across the European Union. We find that the euro’s impact on financial integration is primarily driven by eliminating the currency risk. Legislative-regulatory convergence has also contributed to the spur of cross-border financial transactions. Trade in goods, while highly correlated with bilateral financial activities, does not play a key role in explaining the euro’s positive effect on financial integration.
 
25/06/2010
No. 1215: Formal education, mismatch and wages after transition: Assessing the impact of unobserved heterogeneity using matching estimators, by Ana Lamo, Julián Messina, description, download
(JEL: J0) This paper studies the incidence and consequences of the mismatch between formal education and the educational requirements of jobs in Estonia during the years 1997-2003. We find large wage penalties associated with the phenomenon of educational mismatch. Moreover, the incidence and wage penalty of mismatches increase with age. This suggests that structural educational mismatches can occur after fast transition periods. Our results are robust for various methodologies, and more importantly regarding departures from the exogeneity assumptions inherent in the matching estimators used in our analysis.
 
25/06/2010
No. 1214: Detecting and interpreting financial stress in the euro area, by Marianna Blix Grimaldi, description, download
(JEL: E44, E50, G10) There is a need to find better models and indicators for large disruptive events, not least in order to be more prepared and mitigate their effects. In this paper we take a step in this direction and discuss the performance of a financial stress indicator with a specific focus on the euro area. As far as we know, our indicator is the first attempt to develop an indicator of financial stress with a specific focus on the euro area. It is also the first to exploit the information contained in central bank communication to help measure stress in financial markets. For use in real time, the indicator is able to efficiently extract information from an otherwise noisy signal and provide information about the level of stress in the markets.
 
25/06/2010
No. 1213: The incidence of nominal and real wage rigidity: an individual-based sectoral approach, by Julián Messina, Mario Izquierdo, Philip Du Caju, Cláudia Filipa Duarte, Niels Lynggård Hansen, description, download
(JEL: J31) This paper presents estimates based on individual data of downward nominal and real wage rigidities for thirteen sectors in Belgium, Denmark, Spain and Portugal. Our methodology follows the approach recently developed for the International Wage Flexibility Project, whereby resistance to nominal and real wage cuts is measured through departures of observed individual wage change histograms from an estimated counterfactual wage change distribution that would have prevailed in the absence of rigidity. We evaluate the role of worker and firm characteristics in shaping wage rigidities. We also confront our estimates of wage rigidities to structural features of the labour markets studied, such as the wage bargaining level, variable pay policy and the degree of product market competition. We find that the use of firm-level collective agreements in countries with rather centralized wage formation reduces the degree of real wage rigidity. This finding suggests that some degree of decentralization within highly centralized countries allows firms to adjust wages downwards, when business conditions turn bad.
 
25/06/2010
Publication Research Bulletin No. 10 , download
 
25/06/2010
CON/2010/50 Opinion on extending government guarantees to banks and other institutions and the prolongation of the State recapitalisation scheme, en
 
24/06/2010
USD10008 (OT,liquidity providing):0 mn USD alloted (fixed 1.19%, 0% allotment at margin), more
 
24/06/2010
Interview Jean-Claude Trichet: Interview with La Repubblica, en
 
23/06/2010
20100050 (OT,liquidity absorbing):51000 mn EUR alloted (marginal 0.4%, weighted average 0.31%, 17.0727% allotment at margin), more
 
23/06/2010
20100049 (MRO,liquidity providing):151511.4 mn EUR alloted (fixed 1%, 100% allotment at margin), more
 
23/06/2010
Euro area investment fund statistics, more
 
22/06/2010
Announcing 20100049 (MRO,liquidity providing), for 7 days deadline 09:30, more
 
22/06/2010
Euro area balance of payments in April 2010, more
 
21/06/2010
2010-06-21 - Webcast of hearing at the European Parliament - Introduction Sharon Bowles, Chairwoman of Eco. and Mon. Aff., download
 
21/06/2010
2010-06-21 - Webcast of hearing at the European Parliament - Speech Jean-Claude Trichet, President of ECB, download
 
21/06/2010
2010-06-21 - Webcast of hearing at the European Parliament - Question and Answer session, download
 
21/06/2010
CON/2010/49 Opinion on Sveriges Riksbank’s right to collect information from Swedish issuers of securities, en
 
21/06/2010
Fine-tuning operation, more
 
21/06/2010
Speech Jean-Claude Trichet: Hearing at the Economic and Monetary Affairs Committee of the European Parliament, en
 
21/06/2010
Speech José Manuel González-Páramo: Reform of the architecture of the financial system, en
 
21/06/2010
Occasional paper no. 112 Public wages in the euro area - towards securing stability and competitiveness , by Fédéric Holm-Hadulla, Kishore Kamath, Ana Lamo, Javier J. Pérez and Ludger Schuknecht, download
 
20/06/2010
Press release Joint press release by the ECB and the Eurogroup on reforms of the exchange rate regime of the Renminbi, en
 
18/06/2010
Press release Publication of the European Court of Auditors’ report on the operational efficiency of the ECB’s management for the financial year 2008 and the ECB’s reply, bg . cs . da . de . el . en . es . et . fi . fr . hu . it . lt . lv . mt . nl . pl . pt . ro . sk . sl . sv
 
18/06/2010
Speech Lorenzo Bini Smaghi: The financial and fiscal crisis: a euro area perspective, en
 
18/06/2010
Speech José Manuel González-Páramo: The European Central Bank and the policy of enhanced credit support, en
 
18/06/2010
Speech Jean-Claude Trichet: Lessons drawn from the crisis, en
 
17/06/2010
Monthly Bulletin Monthly Bulletin, June 2010, download
 
17/06/2010
Statistics Pocket Book Statistics Pocket Book, June 2010, download
 
17/06/2010
Press release Statement by the EC, ECB, and IMF on the Interim Review Mission to Greece, de . el . en . es . fi . fr . it . mt . nl . pt . sk . sl . sv
 
17/06/2010
Publication Reinforcing economic governance in the euro area , download
 
17/06/2010
Publication Letter from the ECB President to the President of the European Council, Mr. Herman Van Rompuy, presenting the ECB's Governing Council proposals for reinforcing economic governance in the euro area , download
 
17/06/2010
CON/2010/48 Opinion on the restructuring of the Central Bank and Financial Services Authority of Ireland, en
 
16/06/2010
USD10007 (OT,liquidity providing):0 mn USD alloted (fixed 1.17%, 0% allotment at margin), more
 
16/06/2010
20100048 (OT,liquidity absorbing):363474.9 mn EUR alloted (marginal 0.8%, weighted average 0.77%, 100% allotment at margin), more
 
16/06/2010
20100047 (OT,liquidity absorbing):47000 mn EUR alloted (marginal 0.3%, weighted average 0.28%, 85.6177% allotment at margin), more
 
16/06/2010
20100046 (LTRO,liquidity providing):31603.3 mn EUR alloted (fixed 1%, 100% allotment at margin), more
 
16/06/2010
20100045 (MRO,liquidity providing):126671.5 mn EUR alloted (fixed 1%, 100% allotment at margin), more
 
16/06/2010
Speech José Manuel González-Páramo: Re-starting securitisation, en
 
16/06/2010
Speech Lorenzo Bini Smaghi: The role of regulators when markets fail, en
 
16/06/2010
Occasional paper no. 113 Energy markets and the euro area macroeconomy , by Task Force of the Monetary Policy Committee of the ESCB, download
 
15/06/2010
Announcing 20100046 (LTRO,liquidity providing), for 28 days deadline 09:30, more
 
15/06/2010
Announcing 20100045 (MRO,liquidity providing), for 7 days deadline 09:30, more
 
14/06/2010
Fine-tuning operation, more
 
14/06/2010
Speech Lorenzo Bini Smaghi: Monetary policy transmission in a changing financial system: lessons from the recent past, thoughts about the future, en
 
14/06/2010
CON/2010/47 Opinion on amendments to the Law on covered bonds (Pfandbriefe), en
 
11/06/2010
Speech Gertrude Tumpel-Gugerell: Address on the occasion of the opening ceremony of the Euro Exhibition at Narodowy Bank Polski, en . pl
 
11/06/2010
Speech Gertrude Tumpel-Gugerell: Financial Integration and Stability: 
Efficiency Gains vs. Pitfalls, en
 
11/06/2010
Speech Lorenzo Bini Smaghi: Europe, the United States and the new challenges to the global economy, en
 
11/06/2010
Euro area securities issues statistics, more
 
10/06/2010
2010-06-10 - Press Conference - Introductory statement, download
 
10/06/2010
2010-06-10 - Press Conference - Question and Answer session, download
 
10/06/2010
2010-06-10 - Press Conference - Introductory statement, download
 
10/06/2010
2010-06-10 - Press Conference - Question and Answer session, download
 
10/06/2010
USD10006 (OT,liquidity providing):0 mn USD alloted (fixed 1.2%, 0% allotment at margin), more
 
10/06/2010
Speech Jean-Claude Trichet: The changing world of global governance, en
 
10/06/2010
Press conference Jean-Claude Trichet: Introductory statement, en
 
10/06/2010
Press release ECB announces details of longer-term refinancing operations in the third quarter of 2010, en
 
10/06/2010
Press release Monetary policy decisions, bg . cs . da . de . el . en . es . et . fi . fr . hu . it . lt . lv . mt . nl . pl . pt . ro . sk . sl . sv
 
10/06/2010
No. 1212: Multimarket trading and the cost of debt: evidence from global bonds, by Lubomir Petrasek, description, download
(JEL: G15, G12, G32, F36) Global bonds are international securities designed to be traded and settled efficiently in multiple markets. This paper studies global bonds to examine the effects of multimarket trading on corporate bond liquidity, prices, and the cost of debt. Using a sample of primary and secondary market transactions matched by issuer, I find that global bonds command a significant liquidity and price advantage over comparable domestic bonds. On average, global bonds trade at yields 15 to 25 basis points below domestic bonds of the same issuers, with the difference being greater for speculative grade bonds and in times of crisis. Global issues are more liquid, as evidenced by several trade-based liquidity measures, but the liquidity advantage of global bonds does not fully explain the yield differential. The findings imply that international corporate bond markets are not fully integrated, and global bond offerings can reduce the cost of debt.
 
10/06/2010
No. 1211: Efficiency and risk in european banking, by Franco Fiordelisi, David Marqués-Ibáñez, Phil Molyneux, description, download
(JEL: G21, D24, C23, E44) We analyze the impact of efficiency on bank risk. We also consider whether bank capital has an effect on this relationship. We model the inter-temporal relationships among efficiency, capital and risk for a large sample of commercial banks operating in the European Union. We find that reductions in cost and revenue efficiencies increase banks’ future risks thus supporting the bad management and efficiency version of the moral hazard hypotheses. In contrast, bank efficiency improvements contribute to shore up bank capital levels. Our findings suggest that banks lagging behind in their efficiency levels might expect higher risk and subdued capital positions in the near future.
 
10/06/2010
No. 1210: Towards a robust monetary policy rule for the euro area, by Tobias Blattner, Emil Margaritov, description, download
(JEL: C50, E52, E58) Estimations of simple monetary policy rules are often very rigid. Standard practice requires that a decision is made as to which indicators the central bank is assumed to respond to, ignoring the data-rich environment in which policy-makers typically form their decisions. However, the choice of the feedback variables in the estimations of simple rules bears non-trivial implications for the prescriptions borne from these rules. This paper addresses this issue for the euro area using a new comprehensive real-time database for the euro area and examines the ECB’s past interest-rate setting behaviour in two complementary ways that are designed to deal with both model and data uncertainty. In a first step we follow the “thick-modelling” approach suggested by Granger and Jeon (2004) and estimate a series of 3,330 policy rules. In a second step we employ a factor-model approach similar to Bernanke and Boivin (2003) for the US Fed, but with structurally interpretable factors à la Belviso and Milani (2006). Taken together, we find a strong justification for the need of adopting robust approaches to describe the historical evolution of euro area monetary policy. We also find that the ECB is neither purely backward nor forward-looking, but reacts to a synthesis of the available information on the current and future state of the economy.
 
10/06/2010
No. 1209: Epstein-Zin preferences and their use in macro-finance models: implications for optimal monetary policy, by Matthieu Darracq Pariès, Alexis Loublier, description, download
(JEL: E44, E52, E61, G12) Epstein-Zin preferences have attracted significant attention within the macro-finance literature based on DSGE models as they allow to substantially increase risk aversion, and consequently generate non-trivial risk premia, without compromising the ability of standard models to achieve satisfactory macroeconomic data coherence. Such appealing features certainly hold for structural modelling frameworks where monetary policy is set according to Taylor-type rules or seeks to minimize an ad hoc loss function under commitment. However, Epstein-Zin preferences may have significant quantitative implications for both asset pricing and macroeconomic allocation under a welfare-based monetary policy conduct. Against this background, the paper focuses on the impact of such preferences on the Ramsey approach to monetary policy within a medium-scale model based on Smets and Wouters (2007) including a wide range of nominal and real frictions that have proven to be relevant for quantitative business cycle analysis. After setting an empirical benchmark that generates a mean value of 100 bp for the ten-year term premium, we show that Epstein-Zin preferences significantly affect the macroeconomic outcome when optimal policy is considered. The level and the dynamic pattern of risk premia are also markedly altered. We show that the effect of Epstein-Zin preferences is extremely sensitive to the presence of real rigidities in the form of quasi-kinked demands. We also analyse how this effect can be linked to a combined e¤ect of capital accumulation and wage rigidities.
 
10/06/2010
No. 1208: Reverse causality in global current accounts, by Gunther Schnabl, Stephan Freitag, description, download
(JEL: F31, F32) The paper discusses global imbalances under the aspect of an asymmetric world monetary system. It identifies the US and Germany as center countries with rising / high current account deficits (US) and surpluses (Germany). These are matched by current account surpluses of countries stabilizing their exchange rates against the dollar (dollar periphery) and current account deficits of countries stabilizing their exchange rate against the euro (euro periphery). Meanwhile, the aggregate current account balance of the euro area has been by and large balanced. The paper finds that changes of world current account positions are affected by the macroeconomic policy decisions both in the centers and peripheries, albeit the centers – due to structural characteristics related to size – are argued to have a higher degree of freedom in macroeconomic policy making. In specific, expansionary monetary policy in the US as well as exchange rate stabilization and sterilization policies in the dollar periphery are found to have contributed to global current account imbalances. Given that the sample period for the analysis extends from 1981-2008, the results for Germany mostly capture the situation before the euro was created.
 
10/06/2010
No. 1207: Money growth and inflation: a regime switching approach, by Gianni Amisano, Gabriel Fagan, description, download
(JEL: C11, C53, E31) We develop a time-varying transition probabilities Markov Switching model in which inflation is characterised by two regimes (high and low inflation). Using Bayesian techniques, we apply the model to the euro area, Germany, the US, the UK and Canada for data from the 1960s up to the present. Our estimates suggest that a smoothed measure of broad money growth, corrected for real-time estimates of trend velocity and potential output growth, has important leading indicator properties for switches between inflation regimes. Thus money growth provides an important early warning indicator for risks to price stability.
 
09/06/2010
20100044 (OT,liquidity absorbing):40500 mn EUR alloted (marginal 0.35%, weighted average 0.31%, 35.8884% allotment at margin), more
 
09/06/2010
20100043 (MRO,liquidity providing):122038.8 mn EUR alloted (fixed 1%, 100% allotment at margin), more
 
09/06/2010
Speech Jean-Claude Trichet: European integration: the benefits of acting collectively, de . en
 
08/06/2010
Announcing 20100043 (MRO,liquidity providing), for 7 days deadline 09:30, more
 
08/06/2010
No. 1206: Relative house price dynamics across euro area and US cities: convergence or divergence?, by Paul Hiebert, Moreno Roma, description, download
(JEL: R21, R31, E31) This paper examines the time varying dispersion in city house price levels across the four biggest euro area countries compared with those in the United States. Using available city-level data over the period 1987-2008, it tests for price convergence and analyses key factors explaining price differentials in a panel regression framework including per capita income, population and relative distances. Results indicate limited evidence of convergence in city-level house prices despite synchronised cycles in the national aggregates for most countries since the 1990s. There is an important role for income differentials in explaining city-level house price dispersion in Germany, France, and the US (but not in Italy or Spain once unobserved city factors are taken into account). At the same time, population differences across cities play a role, though this appears to be associated with amenities specific to a particular location. In general, there has been a lower dispersion of city-level house prices in the four largest euro area economies compared with the US in conjunction with a lower estimated income elasticity for house price differentials. The results, particularly for income, appear to be robust to restricting the analysis to large urban centres.
 
08/06/2010
No. 1205: Nelson-Siegel, affine and quadratic yield curve specifications: which one is better at forecasting?, by Ken Nyholm, Rositsa Vidova-Koleva, description, download
(JEL: C14, C15, G12) In this paper we compare the in-sample fit and out-of-sample forecasting performance of no-arbitrage quadratic and essentially affine term structure models, as well as the dynamic Nelson-Siegel model. In total eleven model variants are evaluated, comprising five quadratic, four affine and two Nelson-Siegel models. Recursive re-estimation and out-of-sample one-, six- and twelve-months ahead forecasts are generated and evaluated using monthly US data for yields observed at maturities of 1, 6, 12, 24, 60 and 120 months. Our results indicate that quadratic models provide the best in-sample fit, while the best out-of-sample performance is generated by three-factor affine models and the dynamic Nelson-Siegel model variants. However, statistical tests fail to identify one single-best forecasting model class.
 
07/06/2010
USD10005 (OT,liquidity providing):0 mn USD alloted (fixed 1.21%, 0% allotment at margin), more
 
07/06/2010
20100042 (OT,liquidity absorbing):35000 mn EUR alloted (marginal 0.28%, weighted average 0.28%, 95.1613% allotment at margin), more
 
07/06/2010
20100041 (MRO,liquidity providing):117726.9 mn EUR alloted (fixed 1%, 100% allotment at margin), more
 
07/06/2010
USD10004 (OT,liquidity providing):5400 mn USD alloted (fixed 1.23%, 100% allotment at margin), more
 
07/06/2010
20100040 (LTRO,liquidity providing):12163 mn EUR alloted (fixed 1%, 100% allotment at margin), more
 
07/06/2010
20100039 (OT,liquidity absorbing):26500 mn EUR alloted (marginal 0.28%, weighted average 0.27%, 73.4454% allotment at margin), more
 
07/06/2010
20100038 (MRO,liquidity providing):106013.8 mn EUR alloted (fixed 1%, 100% allotment at margin), more
 
07/06/2010
USD10003 (OT,liquidity providing):0 mn USD alloted (fixed 1.22%, 0% allotment at margin), more
 
07/06/2010
USD10002 (OT,liquidity providing):1032 mn USD alloted (fixed 1.24%, 100% allotment at margin), more
 
07/06/2010
20100037 (OT,liquidity absorbing):16500 mn EUR alloted (marginal 0.29%, weighted average 0.28%, 44.3902% allotment at margin), more
 
07/06/2010
20100036 (MRO,liquidity providing):104751.9 mn EUR alloted (fixed 1%, 100% allotment at margin), more
 
07/06/2010
20100035 (LTRO,liquidity providing):35667.5 mn EUR alloted ( 100% allotment at margin), more
 
07/06/2010
USD10001 (OT,liquidity providing):9205 mn USD alloted (fixed 1.22%, 100% allotment at margin), more
 
07/06/2010
20100034 (OT,liquidity absorbing):319692.6 mn EUR alloted (marginal 0.8%, weighted average 0.76%, 100% allotment at margin), more
 
07/06/2010
20100033 (LTRO,liquidity providing):20479.6 mn EUR alloted (fixed 1%, 100% allotment at margin), more
 
07/06/2010
20100032 (MRO,liquidity providing):99570.2 mn EUR alloted (fixed 1%, 100% allotment at margin), more
 
07/06/2010
20100031 (MRO,liquidity providing):90316.8 mn EUR alloted (fixed 1%, 100% allotment at margin), more
 
07/06/2010
20100030 (LTRO,liquidity providing):4845.6 mn EUR alloted (marginal 1%, weighted average 1.15%, 100% allotment at margin), more
 
07/06/2010
20100029 (MRO,liquidity providing):75623.5 mn EUR alloted (fixed 1%, 100% allotment at margin), more
 
07/06/2010
20100028 (MRO,liquidity providing):70227.5 mn EUR alloted (fixed 1%, 100% allotment at margin), more
 
07/06/2010
20100027 (OT,liquidity absorbing):292294.6 mn EUR alloted (marginal 0.8%, weighted average 0.76%, 100% allotment at margin), more
 
07/06/2010
20100026 (LTRO,liquidity providing):15729.7 mn EUR alloted (fixed 1%, 100% allotment at margin), more
 
07/06/2010
20100025 (MRO,liquidity providing):70577 mn EUR alloted (fixed 1%, 100% allotment at margin), more
 
07/06/2010
20100024 (MRO,liquidity providing):71534.6 mn EUR alloted (fixed 1%, 100% allotment at margin), more
 
07/06/2010
20100023 (LTRO,liquidity providing):17875.9 mn EUR alloted ( 100% allotment at margin), more
 
07/06/2010
20100022 (LTRO,liquidity providing):2015 mn EUR alloted (fixed 1%, 100% allotment at margin), more
 
07/06/2010
20100021 (MRO,liquidity providing):78265.7 mn EUR alloted (fixed 1%, 100% allotment at margin), more
 
07/06/2010
20100020 (MRO,liquidity providing):81061.5 mn EUR alloted (fixed 1%, 100% allotment at margin), more
 
07/06/2010
20100019 (MRO,liquidity providing):79031.7 mn EUR alloted (fixed 1%, 100% allotment at margin), more
 
07/06/2010
20100018 (OT,liquidity absorbing):294486.1 mn EUR alloted (marginal 0.8%, weighted average 0.76%, 100% allotment at margin), more
 
07/06/2010
20100017 (LTRO,liquidity providing):9314.5 mn EUR alloted (fixed 1%, 100% allotment at margin), more
 
07/06/2010
20100016 (MRO,liquidity providing):78402.3 mn EUR alloted (fixed 1%, 100% allotment at margin), more
 
07/06/2010
Fine-tuning operation, more
 
07/06/2010
Press release SEPA Council meets for the first time, discusses migration end dates and future of SEPA for cards, en
 
07/06/2010
MFI interest rate statistics, more
 
07/06/2010
Press release ECB publishes the 2010 Structural Issues Report on energy markets and the euro area macroeconomy, en
 
04/06/2010
No. 1204: Banking sector output measurement in the euro area - a modified approach, by Antonio Colangelo, Robert Inklaar, description, download
(JEL: E01, E44, O47) Banks do not charge explicit fees for many of the services they provide but the service payment is bundled with the offered interest rates. This output therefore has to be imputed using estimates of the opportunity cost of funds. We argue that rather than using the single short-term, low-risk interest rate as in current official statistics, reference rates should more closely match the risk characteristics of loans and deposits. For the euro area, imputed bank output is, on average, 24 to 40 percent lower than according to current methodology. This implies an average downward adjustment of euro area GDP (at current prices) between 0.16 and 0.27 percent.
 
04/06/2010
No. 1203: Cross-border banking and the international transmission of financial distress during the crisis of 2007-2008, by Alexander Popov, Gregory F. Udell, description, download
(JEL: E44, E51, F34, G21) We study the effect of financial distress in foreign parent banks on local SME financing in 14 central and eastern European countries during the early stages of the 2007-2008 financial crisis. We use survey data on applicant and non-applicant firms that enable us to disentangle effects driven by shocks to the banking system from recession-driven demand shocks that may vary across lenders. We find strong evidence that credit tightened in the relatively early stages of the crises caused by the following types of bank financial distress: 1) low equity ratio; 2) low Tier 1 capital ratio; and 3) losses on financial assets. We also find that foreign banks transmit to Main Street a larger portion of similar financial shocks than domestic banks. The observed decline in credit is greater among high-risk firms and firms with fewer tangible assets.
 
04/06/2010
No. 1202: Involuntary unemployment and the business cycle, by Lawrence Christiano, Mathias Trabandt, Karl Walentin, description, download
(JEL: E2, E3, E5, J2, J6) We propose a monetary model in which the unemployed satisfy the official US definition of unemployment: they are people without jobs who are (i) currently making concrete efforts to find work and (ii) willing and able to work. In addition, our model has the property that people searching for jobs are better off if they find a job than if they do not (i.e., unemployment is ‘involuntary’). We integrate our model of involuntary unemployment into the simple New Keynesian framework with no capital and use the resulting model to discuss the concept of the ‘non-accelerating inflation rate of unemployment’. We then integrate the model into a medium sized DSGE model with capital and show that the resulting model does as well as existing models at accounting for the response of standard macroeconomic variables to monetary policy shocks and two technology shocks. In addition, the model does well at accounting for the response of the labor force and unemployment rate to the three shocks.
 
04/06/2010
No. 1201: Growth strategies and value creation: what works best for stock exchanges?, by Iftekhar Hasan, Heiko Schmiedel, Liang Song, description, download
(JEL: L22, G32, D23) In recent years, demutualized stock exchanges have been increasingly engaging in M&A and alliance activities. To examine the effect of these growth strategies on exchange shareholders’ value creation, we focus on 14 public stock exchanges and investigate their short-run share price responses to the formation of 110 M&As and alliances all over the world spanning the period 2000-2008. Our findings show that the average stock price responses for M&As and alliances are positive. M&As create more value than alliances. For alliances, joint ventures generate more value than non-equity alliances. More value accrues when the integration is horizontal (cross-border) than when it is vertical (domestic). Additionally, there is evidence of learning-by-doing effects in stock exchange integration activities. Finally, we find that the better the shareholder protection, accounting standards and capital market development in the partner exchange’s country, the higher the merger and alliance premium for our sample exchange. These patterns are consistent when we examine the exchanges’ long-run performance.
 
02/06/2010
Press release Distribution of responsibilities among the members of the Executive Board of the ECB, bg . cs . da . de . el . en . es . et . fi . fr . hu . it . lt . lv . mt . nl . pl . pt . ro . sk . sl . sv
 
01/06/2010
CON/2010/46 Opinion on amendments to several provisions of the Law on banking, en