ECB News: August 2010

 

Archive

 
31/08/2010
Announcing 20100077 (MRO,liquidity providing), for 7 days deadline 09:30, more
 
30/08/2010
Fine-tuning operation, more
 
27/08/2010
Speech Jean-Claude Trichet: Central banking in uncertain times: conviction and responsibility, en
 
26/08/2010
Decision ECB/2001/15. Unofficial consolidated text [2a)-f)]. Produced by the Publications Office of the European Union , en
 
26/08/2010
USD10017 (OT,liquidity providing):40 mn USD alloted (fixed 1.18%, 100% allotment at margin), more
 
26/08/2010
20100076 (LTRO,liquidity providing):19083.35 mn EUR alloted (fixed 1%, 100% allotment at margin), more
 
26/08/2010
Monetary developments in the euro area, more
 
26/08/2010
CON/2010/69 Opinion on further measures for the restoration of budgetary balance, en
 
25/08/2010
Announcing 20100076 (LTRO,liquidity providing), for 91 days deadline 09:30, more
 
25/08/2010
20100075 (OT,liquidity absorbing):60500 mn EUR alloted (marginal 0.37%, weighted average 0.35%, 45.5298% allotment at margin), more
 
25/08/2010
20100074 (MRO,liquidity providing):150315.1 mn EUR alloted (fixed 1%, 100% allotment at margin), more
 
24/08/2010
Announcing 20100074 (MRO,liquidity providing), for 7 days deadline 09:30, more
 
23/08/2010
Fine-tuning operation, more
 
23/08/2010
No. 1237: The impact of high and growing government debt on economic growth: an empirical investigation for the euro area, by Cristina Checherita, Philipp Rother, description, download
(JEL: H63, O40, E62, E43) This paper investigates the average impact of government debt on per-capita GDP growth in twelve euro area countries over a period of about 40 years starting in 1970. It finds a non-linear impact of debt on growth with a turning point—beyond which the government debt-to-GDP ratio has a deleterious impact on long-term growth—at about 90-100% of GDP. Confidence intervals for the debt turning point suggest that the negative growth effect of high debt may start already from levels of around 70-80% of GDP, which calls for even more prudent indebtedness policies. At the same time, there is evidence that the annual change of the public debt ratio and the budget deficit-to-GDP ratio are negatively and linearly associated with per-capita GDP growth. The channels through which government debt (level or change) is found to have an impact on the economic growth rate are: (i) private saving; (ii) public investment; (iii) total factor productivity (TFP) and (iv) sovereign long-term nominal and real interest rates. From a policy perspective, the results provide additional arguments for debt reduction to support longer-term economic growth prospects.
 
23/08/2010
No. 1236: Is the new keynesian IS curve structural?, by Livio Stracca, description, download
(JEL: E21, E44, E52) There is already a small literature emphasising the empirical failure of the New Keynesian IS curve, but it is not yet known if this failure reflects empirical problems associated with small samples or is rather a structural weakness of the underlying model. To address this question, in this paper I estimate the New Keynesian IS curve for output and consumption and several possible extensions on panel data from 22 OECD countries over 40 years of data. I also evaluate whether the key parameters of the IS curve change according to countries' economic and financial structure. The main finding is that output and consumption are mainly forward looking, and this is a very robust feature of the data. At the same time, I find little evidence in favour of the traditional specification where the real interest rate enters with a negative sign due to intertemporal substitution; on the contrary, it is typically either insignificant or wrongly signed. Overall, I conclude that the New Keynesian IS curve, at least in its most common formulations, is not structural and is overwhelmingly rejected by the data.
 
23/08/2010
No. 1235: A note on identification patterns in DSGE models, by Michal Andrle, description, download
(JEL: F31, F41) This paper comments on selected aspects of identification issues of DSGE models. It suggests the singular value decomposition (SVD) as a useful tool for detecting local weak and non-identification. This decomposition is useful for checking rank conditions of identification, identification strength, and it also offers parameter space ‘identification patterns’. With respect to other methods of identification the singular value decomposition is particularly easy to apply and offers an intuitive interpretation. We suggest a simple algorithm for analyzing identification and an algorithm for finding a set of the most identifiable set of parameters. We also demonstrate that the use of bivariate and multiple correlation coefficients of parameters provides only limited check of identification problems.
 
23/08/2010
No. 1234: Imposing parsimony in cross-country growth regressions, by Marek Jarociński, description, download
(JEL: C20, C52, O40, O47) The number of variables related to long-run economic growth is large compared with the number of countries. Bayesian model averaging is often used to impose parsimony in the cross-country growth regression. The underlying prior is that many of the considered variables need to be excluded from the model. This paper, instead, advocates priors that impose parsimony without excluding variables. The resulting models fit the data better and are more robust to revisions of income data. The positive relationship between measures of trade openness and growth is much stronger than found in the literature.
 
23/08/2010
ECB/2010/11 Recommendation of the ECB of 23 August 2010 to the Council of the European Union on the external auditors of the Banca d'Italia, en
 
19/08/2010
USD10016 (OT,liquidity providing):35 mn USD alloted (fixed 1.19%, 100% allotment at margin), more
 
19/08/2010
ECB/2010/10 Decision of the ECB of 19 August 2010 on non-compliance with statistical reporting requirements , en
 
18/08/2010
Decision ECB/2001/16. Unofficial consolidated text [2 a) - e)]. Produced by the Publications Office of the European Union , en
 
18/08/2010
20100073 (OT,liquidity absorbing):60500 mn EUR alloted (marginal 0.4%, weighted average 0.39%, 70.4508% allotment at margin), more
 
18/08/2010
20100072 (MRO,liquidity providing):155226.6 mn EUR alloted (fixed 1%, 100% allotment at margin), more
 
18/08/2010
Euro area investment fund statistics, more
 
17/08/2010
Announcing 20100072 (MRO,liquidity providing), for 7 days deadline 09:30, more
 
17/08/2010
Euro area balance of payments in June 2010, more
 
16/08/2010
Fine-tuning operation, more
 
16/08/2010
No. 1233: Bank heterogeneity and monetary policy transmission, by Sophocles N. Brissimis, Manthos D. Delis, description, download
(JEL: E44, E52, G21, C14) Heterogeneity in the response of banks to a change in monetary policy is an important element in the transmission of this policy through banks. This paper examines the role of bank liquidity, capitalization and market power as internal factors influencing banks’ reaction in terms of lending and risk-taking to monetary policy impulses. The ultimate impact of a monetary policy change on bank performance is also considered. The empirical analysis, using large panel datasets for the United States and the euro area, elucidates the sources of differences in the response of banks to changes in policy interest rates by disaggregating down to the individual bank level. This is achieved by the use of a Local GMM technique that also enables us to quantify the degree of heterogeneity in the transmission mechanism. It is argued that the extensive heterogeneity in banks’ response identifies overlooked consequences of bank behavior and highlights potential monetary sources of the current financial distress.
 
12/08/2010
USD10015 (OT,liquidity providing):430 mn USD alloted (fixed 1.18%, 100% allotment at margin), more
 
12/08/2010
Monthly Bulletin Monthly Bulletin, August 2010, download
 
12/08/2010
Statistics Pocket Book Statistics Pocket Book, August 2010, download
 
12/08/2010
Occasional paper no. 118 The impact of the global financial turmoil and recession on Mediterranean countries’ economies , by Michael Sturm and Nicolas Sauter, download
 
12/08/2010
Publication Article, Monthly Bulletin, August 2010, pp 75-92, Oil prices – Their determinants and impact on euro area inflation and the macroeconomy , download
 
12/08/2010
Publication Article, Monthly Bulletin, August 2010, pp 93-107, Recent developments in global and euro area trade , download
 
12/08/2010
Publication Article, Monthly Bulletin, August 2010, pp 109-122, Harmonised ECB statistics on euro area investment funds and their analytical use for monetary policy purposes , download
 
11/08/2010
20100071 (OT,liquidity absorbing):201834.4 mn EUR alloted (marginal 0.8%, weighted average 0.77%, 100% allotment at margin), more
 
11/08/2010
20100070 (OT,liquidity absorbing):60500 mn EUR alloted (marginal 0.47%, weighted average 0.43%, 28.9389% allotment at margin), more
 
11/08/2010
20100069 (MRO,liquidity providing):153746.6 mn EUR alloted (fixed 1%, 100% allotment at margin), more
 
11/08/2010
20100068 (LTRO,liquidity providing):39147.77 mn EUR alloted (fixed 1%, 100% allotment at margin), more
 
11/08/2010
CON/2010/68 Opinion on reserve requirements for credit institutions, en
 
11/08/2010
Euro area securities issues statistics, more
 
10/08/2010
Announcing 20100069 (MRO,liquidity providing), for 7 days deadline 09:30, more
 
10/08/2010
Announcing 20100068 (LTRO,liquidity providing), for 28 days deadline 09:30, more
 
09/08/2010
Fine-tuning operation, more
 
09/08/2010
CON/2010/67 Opinion on a proposal for a Commission regulation laying down detailed rules for the implementation of Council Regulation (EC) No 2494/95 as regards minimum standards for the quality of HICP weightings and repealing Commission Regulation (EC) , en
 
09/08/2010
CON/2010/66 Opinion on amendments to the legislation on official statistics, en
 
09/08/2010
CON/2010/67 Opinion on a proposal for a Commission regulation laying down detailed rules for the implementation of Council Regulation (EC) No 2494/95 as regards minimum standards for the quality of HICP weightings and repealing Commission Regulation (EC) , en
 
06/08/2010
CON/2010/65 Opinion on a proposal for a directive of the European Parliament and of the Council amending Directives 2006/48/EC and 2006/49/EC as regards capital requirements for the trading book and for resecuritisations, and the supervisory review of rem, en
 
06/08/2010
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
 
06/08/2010
CON/2010/65 Opinion on a proposal for a directive of the European Parliament and of the Council amending Directives 2006/48/EC and 2006/49/EC as regards capital requirements for the trading book and for resecuritisations, and the supervisory review of rem, en
 
06/08/2010
CON/2010/64 Opinion on amendments to the legal framework for the deposit-guarantee scheme , en
 
05/08/2010
2010-08-05 - Press Conference - Introductory statement, download
 
05/08/2010
2010-08-05 - Press Conference - Question and Answer session, download
 
05/08/2010
2010-08-05 - Press Conference - Introductory statement, download
 
05/08/2010
2010-08-05 - Press Conference - Question and Answer session, download
 
05/08/2010
USD10014 (OT,liquidity providing):0 mn USD alloted (fixed 1.19%, 0% allotment at margin), more
 
05/08/2010
Press conference Jean-Claude Trichet: Introductory statement, en
 
05/08/2010
Press release Statement by the EC, ECB and IMF on the first review mission to Greece, de . el . en . es . fi . fr . it . mt . nl . pt . sk . sl . sv
 
05/08/2010
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
 
05/08/2010
No. 1232: The impact of monetary policy shocks on commodity prices, by Alessio Anzuini, Marco J. Lombardi, Patrizio Pagano, description, download
(JEL: E31, E40, C32) Global monetary conditions have often been cited as a driving factor of commodity prices. This paper investigates the empirical relationship between US monetary policy and commodity prices by means of a standard VAR system, commonly used in analysing the effects of monetary policy shocks. The results suggest that expansionary US monetary policy shocks drove up the broad commodity price index and all of its components. While these effects are significant, they however do not appear to be overwhelmingly large. This finding is also confirmed under different identification strategies for the monetary policy shock.
 
05/08/2010
Publication Commission public consultation on short selling - Eurosystem reply , download
 
05/08/2010
CON/2010/63 Opinion on implementing rules regarding compensation systems at institutions and insurance companies, en
 
04/08/2010
20100067 (OT,liquidity absorbing):60500 mn EUR alloted (marginal 0.5%, weighted average 0.45%, 86.2248% allotment at margin), more
 
04/08/2010
20100066 (MRO,liquidity providing):154844.4 mn EUR alloted (fixed 1%, 100% allotment at margin), more
 
04/08/2010
CON/2010/62 Opinion on amendments to various laws regarding the reduction of financial imbalances, en
 
03/08/2010
Announcing 20100066 (MRO,liquidity providing), for 7 days deadline 09:30, more
 
03/08/2010
CON/2010/61 Opinion on certain competences of the Governing Council of Българска народна банка (Bulgarian National Bank), en
 
02/08/2010
Fine-tuning operation, more
 
02/08/2010
MFI interest rate statistics, more
 
02/08/2010
No. 1231: Real convergence and its illusions, by Marcin Kolasa, description, download
(JEL: D58, E32, F41) This paper uses the EAGLE, a multi-country dynamic general equilibrium model, to illustrate dynamic adjustments in a small open economy undergoing real convergence. We consider the effects of productivity catch-up and misperceptions about future productivity developments. Our results indicate that even if real convergence takes the form of a gradual process, the dynamic responses of key macrovariables can be far from smooth. We also find that overly optimistic expectations about productivity shifts can generate sizable boom-bust cycles and so be relevant in accounting for cyclical deviations from a sustainable real convergence path. Our comparisons across alternative monetary regimes reveal that a flexible exchange rate helps to smooth real convergence processes and misperceptions associated with tradable sector productivity, while the opposite usually holds true for scenarios based on nontradable sector developments.
 
02/08/2010
CON/2010/60 Opinion on the minimum reserves framework, en