Browsing by Subject "ECB"
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(2017)The idea of researching transparency in the European Central Bank came during one course on European Monetary Union – a legal, economic and historical approach when a debate on how transparent or not transparent European Central Bank in its communications during the crisis. The discussion started from the announcement of the OMT Program; which is rather short and brief. In the previous years before the crisis, the European Central Bank had been recognized in several research studies as one of the most transparent banks in the world; but transparency does not have only one definition and there is no agreement in the research field about it. No study, so far has taken into consideration analyzing transparency based on the organizational set up and the legal framework. The definition of transparency and how the term is used in a social context, combining theoretical and practical sides of the term and offering insights on the understanding of the organization regarding transparency and its limits. The result of the research is that transparency appears briefly in the legal framework, as well in the organizational set up of the ECB, like a characteristic that is acknowledged and must be improved and, in the same time, as a tool for improving the communication between the public organization and the citizens to increase the democratic deficiency. The definition of transparency is related with elements of the ECB organizational set-up like primary objective, tasks, reports and access to documents. The primary objective and tasks can be easily identified in the mission of the ECB, but the communication strategy is dispersed as the ECB main duty is to publish reports regarding its activities, but communicating the decisions it is up to the Governing Council. Last but not least, the access to documents is strictly described in terms of when access is denied and what is considered citizens’ interest. These rules have been conducting the behavior of the ECB when announcing the OMT Program and their behavior through the entire time. In the context of the economic crisis, the OMT Program is a changing element that transformed the ECB way of communicating in a more efficient way and emphasizing that what and how communicates it is important as adapting the style to the audience.
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(2023)Over the past decade, central banks have engaged in strong monetary stimulus in response to the aftermath of the financial crisis that began in 2007. On one hand, expansionary monetary policy has enabled economies to return to a growth path, but on the other hand, it has also artificially inflated financial securities prices. While monetary policy has been widely studied from the perspective of real economic, the evidence of its effects on financial intermediates, namely the banking sector, is still limited. This topic has important policy implications, due to banks’ ability to generate adequate profits being relevant for the sustainability of the banking system and, as such, for its capacity to provide sufficient credit to the economy and protect depositors’ funds. The purpose of this study is to measure and reflect on the relationship between these two entities. In monetary policy research, the structured vector autoregressive (SVAR) analysis is widely used to interpret reactions of economic variables to structured shocks. Various identification strategies can be employed to ascertain structured shocks. One, quite robust identification approach is to utilize characteristics of the data and obtain a statistical identification approach. This identification method has advantages over others that seek to specify the model a priori based on restrictions on the shock dynamics. Imposing such restrictions in advance is not unambiguous. Usually, prior restrictions seek support from economic theory. Eventually, the results and reactions of variables to shocks can be interpreted using impulse responses. The empirical analysis of this study was conducted using a Bayesian SVAR model. The model was statistically identified, assuming non-Gaussian error terms. Estimation was performed using a Markov Chain algorithm, more specifically a Non-U-Turn Sampler (NUTS), which allows for efficient estimation of multiple chains simultaneously. The analysis partly supports previous dichotomic evidence. Based on the impulse responses, an unconventional monetary policy shock temporarily increased the value of the banking variable by approximately 1%. This supports previous research evidence that negative interest rate effects can be compensated for by changes in business models and by making non-interest-dependent businesses more profitable.
Now showing items 1-2 of 2