The ECB has engaged in several forms of unconventional monetary policy since 2007. This report documents empirically that the implemented measures were effective. In a counterfactual analysis, the report simulates the effects of an unconventional monetary policy shock of -10 basis points to euro area sovereign yields, consistent with the effect of the first announcement of the Expanded Asset Purchase ...
This paper examines the factors that influence the persistence of inflation following energy price shocks. Although the current oil price shock is economically significant, it is less likely to generate persistent inflationary pressures than the energy crisis of 2022– 23, as European gas markets remain relatively stable. Nevertheless, elevated geopolitical uncertainty and households’ recent inflation ...
