Assessing the Effectiveness of ECB’s LSAPs in Mitigating Euro Area Fragmentation: Evidence from the Covid Crisis
Date
2024
Authors
Gotsis, Juan Manuel
relationships.isContributorOfPublication
Sturzenegger, Federico
Journal Title
Journal ISSN
Volume Title
Publisher
Universidad de San Andrés. Departamento de Economía
Abstract
This paper evaluates the effectiveness of Large-Scale Asset Purchases (LSAPs) implemented by the European Central Bank (ECB) during the Covid crisis in the Euro Area. Using intraday changes in sovereign bond yields and an event-study methodology centered around ECB monetary policy decisions, I assess the impact of LSAPs on long-term sovereign bond yields of seven Euro Area countries. The analysis reveals that LSAPs contributed to reducing risk premia in the Euro Area periphery, mitigating fragmentation, and facilitating the transmission of monetary policy across the region.
Description
Fil: Gotsis, Juan Manuel. Universidad de San Andrés. Departamento de Economía; Argentina.