European Central Bank - eurosystem
Search Options
Home Media Explainers Research & Publications Statistics Monetary Policy The €uro Payments & Markets Careers
Suggestions
Sort by

Christian Sørensen

20 November 2019
FINANCIAL STABILITY REVIEW - BOX
Financial Stability Review Issue 2, 2019
Details
Abstract
Global equity and corporate bond prices have increased steadily since the end of the euro area sovereign debt crisis. Equity prices relative to earnings expectations are at the upper end of their historical distribution and corporate bond yields in the euro area are on aggregate at a historical low. During this time, euro area equity and corporate bond prices have been supported by the large decline in benchmark interest rates, which – in turn – reflects a decline in nominal economic growth rates, as well as accommodative monetary policies, including measures that brought down the short and the long end of the yield curve