Abstract
The working paper first focuses on the European Central Bank’s (ECB) policies to inject cheap liquidity into the banking sector. This
injection was conducted through the Targeted Longer-Term Refinancing Operations (TLTRO) and the Pandemic Emergency Longer-Term Refinancing Operations (PELTRO). This chapter
further discusses the ECB’s policies to increase liquidity to the public sector. These include the Pandemic Emergency Purchase Programme (PEPP) and the Transmission Protection Instrument (TPI). The legality of both of these programmes have been questioned. This chapter considers, however, that both programmes abide by the Treaties. In addition, two recent challenges are discussed. The first challenge is the high level of inflation. The second challenge is the introduction of the digital euro. This chapter concludes that the Monetary Union has been impacted by the pandemic crisis in several ways. The ECB has introduced new programmes with willingness to act swiftly and significantly. Nevertheless, some weaknesses remain, such as the strict divide between economic and monetary policy remains
challenging for the ECB.
injection was conducted through the Targeted Longer-Term Refinancing Operations (TLTRO) and the Pandemic Emergency Longer-Term Refinancing Operations (PELTRO). This chapter
further discusses the ECB’s policies to increase liquidity to the public sector. These include the Pandemic Emergency Purchase Programme (PEPP) and the Transmission Protection Instrument (TPI). The legality of both of these programmes have been questioned. This chapter considers, however, that both programmes abide by the Treaties. In addition, two recent challenges are discussed. The first challenge is the high level of inflation. The second challenge is the introduction of the digital euro. This chapter concludes that the Monetary Union has been impacted by the pandemic crisis in several ways. The ECB has introduced new programmes with willingness to act swiftly and significantly. Nevertheless, some weaknesses remain, such as the strict divide between economic and monetary policy remains
challenging for the ECB.
| Original language | English |
|---|---|
| Publisher | Zenodo |
| Pages | 1 - 13 |
| Number of pages | 13 |
| Volume | 1 |
| DOIs | |
| Publication status | Published - 16 Feb 2024 |
Publication series
| Name | Jean Monnet Centre of Excellence REBUILD Working Paper Series |
|---|---|
| No. | 21 |
| Volume | 1 |
Keywords
- covid-19
- monetary policy
- ECB
- pandemic
- Digital Euro
- asset purchases
- TPI
- PEPP