Do National Economic Shocks Influence European Central Bank Interest Rate Decisions? The Impact of the Financial and Sovereign Debt Crises

2012 ◽  
Vol 51 (2) ◽  
pp. 212-231 ◽  
Author(s):  
Florence Bouvet ◽  
Sharmila King
Keyword(s):  
Interest Rate ◽  
Central Bank ◽  
Sovereign Debt ◽  
European Central Bank ◽  
Economic Shocks ◽  
European Central ◽  
National Economic ◽  
Debt Crises ◽  
The Impact

Determinants of non-cash payments in the Eurozone: Culture matters

2020 ◽  
Vol 89 (4) ◽  
pp. 29-38
Author(s):  
Mechthild Schrooten ◽  
Armin Varmaz
Keyword(s):  
Central Bank ◽  
European Central Bank ◽  
Cultural Factors ◽  
Uncertainty Avoidance ◽  
Cultural Issues ◽  
European Central ◽  
Cash Payment ◽  
The Difference ◽  
Basic Hypothesis ◽  
The Impact

Summary: Retail shops incentive contactless transactions during the current COVID-19 pandemic. Customers are asked to pay cashless to prevent contagion. Traditionally, there are large differences in the extent and acceptance of non-cash payments among nations. This paper analyzes empirically the determinants of the payment behavior in the member states of the Eurozone asking how to explain these traditional differences in non-cash payment preferences. Our basic hypothesis is that culture makes the difference across nations matter. The paper adds to the existing literature not only by focusing on the determinants of preferences for non-cash payments from a macroeconomic perspective but also by analyzing cultural factors. The payment data is gathered with the European Central Bank (ECB) and Eurostat. We examine the impact of culture on payment preferences by the means of the Hofstede indicators. Our empirical results show the importance of cultural issues to understand the acceptance of non-cash payments. In particular, the results suggest that a higher degree of uncertainty avoidance goes in line with more non-cash payments. Zusammenfassung: Im Zuge der Corona-Pandemie hat der Einzelhandel den Einsatz von non-cash Einzelhandel vorangetrieben. Um eine Covid-Ansteckung zu verhindern, werden Kund*innen gebeten bargeldlos zu zahlen. Tatsächlich es gibt zwischen einzelnen Volkswirtschaften große Unterschiede in der Verwendung von Bargeld und bargeldlosen Zahlungen. Im Beitrag wird empirisch der Frage nachgegangen, welche Faktoren hinter diesen Unterschieden stehen. Die zentrale Hypothese ist, dass Kultur eine große Rolle spielt. Dieses Paper analysiert auf der Grundlage der vorhandenen empirischen Literatur den Einfluss kultureller Faktoren auf den Einsatz von bargeldlosen Zahlungen. Dazu werden nicht nur makroökonomische Daten von der Europäischen Zentralbank und Eurostat, sondern auch die Hofstede Indikatoren herangezogen. Die Ergebnisse zeigen, dass insbesondere die kulturelle Dimension „Uncertainty Avoidance“ die nationalen Differenzen der gesellschaftlichen Akzeptanz erklären kann. Volkswirtschaften mit einer höheren „Uncertainty Avoidance“ setzen stärker auf non-cash.

scholarly journals Comparison of the Approach of the Czech National Bank and the European Central Bank to the Effects of the Global Financial Crisis

2021 ◽  
Vol 10 (2) ◽  
pp. 18-46
Author(s):  
Andrea Cecrdlova
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Financial Crisis ◽  
Central Bank ◽  
European Central Bank ◽  
Global Financial Crisis ◽  
Central Banks ◽  
European Central ◽  
National Bank ◽  
The Global Financial Crisis

The latest global crisis, which fully erupted in 2008, can have a significant impact on central banks credibility in the long run. During the last crisis, monetary authorities encountered zero interest rate levels and, as a result, started to use non-standard monetary policy instruments. The Czech National Bank decided to use a less standard instrument in November 2013, when it started to intervene on the foreign exchange market in order to keep the Czech currency at level 27 CZK / EUR. However, the European Central Bank also adopted a non-standard instrument, when chose a path of quantitative easing in 2015 in order to support the euro area economy by purchasing financial assets. The question remains whether the approach of Czech National Bank or the approach of European Central Bank in the crisis and post-crisis period was a more appropriate alternative. With the passage of time from the global financial crisis, it is already possible to compare the approaches of these two central banks and at least partially assess what approach was more appropriate under the given conditions. When comparing the central banks approaches to the crisis, the Czech National Bank was better, both in terms of the rate of interest rate cuts and the resulting inflation with regard to the choice of a non-standard monetary policy instrument. The recent financial crisis has revealed the application of moral hazard in practice, both on behalf of the European Central Bank and the Czech National Bank, which may have a significant impact on their credibility and independence in the coming years.

scholarly journals The European Central Bank Quantitative Policy and Its Consistency with the Demand for Liquidity

2015 ◽  
Vol 62 (3) ◽  
pp. 425-451 ◽  
Author(s):  
Sviatlana Hlebik ◽  
Giovanni Verga
Keyword(s):  
Central Bank ◽  
Interest Rates ◽  
Sovereign Debt ◽  
European Central Bank ◽  
Banking System ◽  
Market Conditions ◽  
Policy Strategy ◽  
European Central

Abstract In 2008 the European Central Bank added a new quantitative policy strategy to its traditional control of the interest rates. This new policy, sometimes called “enhanced credit support”, consists of fully satisfying the demand for liquidity of banks, with the European Central Bank deciding only the timing and characteristics of its interventions. This study analyses the market conditions in which these measures have been taken and their consistency with the demand for liquidity by the banking system. Measures in favour of the sovereign debt of PIIGS countries are also considered.

Troika's Portuguese Ministry of Justice Experiment: Dissipation of Doubts about Success, Continuation and Confirmation of Positive Results

2019 ◽  
Vol 12 (24) ◽  
pp. 40-53
Author(s):  
Pedro Miguel Alves Ribeiro Correia ◽  
◽  
Susana Antas Videira ◽  
Ireneu de Oliveira Mendes ◽  
◽  
...  
Keyword(s):  
Quantitative Analysis ◽  
Empirical Study ◽  
Central Bank ◽  
European Commission ◽  
International Monetary Fund ◽  
European Central Bank ◽  
European Central ◽  
The Impact ◽  
Positive Effect ◽  
Positive Results

This article is the continuation of a series of studies on the impact of the measures implemented by the Portuguese Ministry of Justice. This research addresses the results obtained in the civil enforcement actions arising from objectives included in the Memorandum of Understanding (MoU) signed between Portugal and the so-called Troika (International Monetary Fund / European Commission / European Central Bank). The empirical study was extended to cover the quantitative analysis of the results achieved not only during the Troika period but also during the post-Troika period. The results show and confirm a continued positive effect on the level of civil enforcement actions in the period analyzed.

The European Central Bank

2020 ◽  
Author(s):  
Michael Ioannidis
Keyword(s):  
Central Bank ◽  
Sovereign Debt ◽  
European Central Bank ◽  
Debt Crisis ◽  
Central Banking ◽  
Defining Moment ◽  
European Central ◽  
Economic Constitution ◽  
Rules And Principles ◽  
History Of

The European Central Bank (ECB) is the only central bank governed by supranational constitutional law. As such, it is not only the most important institution of the Economic and Monetary Union (EMU), but it also marks a new stage in the history of central banking in general. Historically, the tasks and functions of the ECB have reflected the different stages of development of the EMU. The basic principles governing its function were set out in Maastricht, reflecting the interests and ideas about Europe’s economic constitution prevailing at that time. The sovereign debt crisis that hit Europe in 2010 was the second defining moment for the ECB after Maastricht. It posited the ECB–like the rest of the EMU–to challenges that some of the drafters of the Maastricht Treaty had not fully anticipated. These new challenges led to the adoption of novel instruments and the further clarification of fundamental rules and principles. Most important of these developments was the entrustment of the ECB with a new task, banking supervision, and the adoption of unconventional measures, which proved necessary to fulfil its monetary-policy mandate. Ultimately, not only did the ECB withstand the crisis but it emerged as a protagonist in securing the unity and integrity of the EMU.

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