Tag: Asset Purchases

The ECB Response to COVID-19

| 27 March 2020
Blog, Monetary | Tags: Asset Purchases, Covid-19, European Central Bank, Helicopter Money, Targeted Refinancing Lines
Since the outbreak of the COVID-19 crisis, the European Central Bank (ECB) committed to inject an additional 870 billion euro – about 7% of the euro area’s GDP – into financial markets to address the significant challenge the pandemic poses to the economy. Through its ... continue reading

Shifting Gears: Integrating Climate Risks in Monetary Policy Operations

| 20 January 2020
Monetary, Policy Briefs | Tags: Asset Purchases, Central Banks, Climate risk, Collateral framework, Credit Risk
The assets central banks purchase and accept as collateral are at the core of monetary policy implementation. Risk considerations play a crucial role in the selection of these assets: central banks seek to limit their holdings and eligible collateral to assets that minimize their risk ... continue reading

Central Banks Should Reflect Climate Risks in Monetary Policy Operations

| 10 September 2018
Monetary, Policy Briefs | Tags: Asset Purchases, Central Banks, Climate risk, Collateral framework
The transition to a low-carbon economy requires a shift in capital allocation from incumbent carbon-intensive technologies to new low-carbon technologies. Financial markets play a key role in this process: they influence firms’ investment costs and serve as reference point in investors’ decisions. Currently, there ... continue reading