MACRO ECONOMIC EFFECTS OF THE EUROPEAN CENTRAL BANK'S ASSET PURCHASE PROGRAMS

The fact that the effects of the European Debt Crisis in the Eurozone countries in the period 2008/2009 were much greater than the previous financial and economic crises forced the European Central Bank to take very different measures than the traditional monetary policies followed by increasing the amount of money and lowering interest rates. In this context, the European Central Bank tried to increase the efficiency of the monetary transmission mechanism by announcing asset purchase programs and to compensate for the negative consequences of the financial crisis on the real economy. In the study, the effects of asset purchase programs on the variables of average inflation, GDP growth, interest rates, unemployment and employment rates in the Eurozone member countries for the period 2009: 5-2020: 11 were investigated. Accordingly, it has been observed that the biggest macroeconomic effects of the European Central Bank's asset purchase programs in the Eurozone are unemployment rates, employment rates, GDP, interest rates and inflation rates in the long run, respectively. It has been found that the unconventional monetary policies implemented by the European Central Bank through asset purchase programs are effective in reducing long-term unemployment rates and increasing employment rates and GDP in the Eurozone.

___

Abbassı, P., & Linzert, T. (2011), The Effectiveness of Monetary Policy in Steering Money Market Rates During The Recent FinancialCrisis, ECB Working Paper Series, 1328, 1-31.

Acharya, V., Christian Eufinger, T.E & Hirsch,C. (2018),Whatever It Takes: The Real Effects of Unconventional Monetary Policy, SAFE Working Paper, 152,1 50.http://dx.doi.org/10.2139/ssrn.2858147

Angelını, P., Nobili,A., & Cristina Picillo (2011),The Interbank Marketafter August 2007: What Has Changed, and Why?, Journal of Money, Credit and Banking, 43 (5): 923-958. https://doi.org/10.1111/j.1538-4616.2011.00402.x

Bluwsteın, K.,&Canova,F. (2016),Beggar-Thy-Neighbor? The International Effectsof ECB Unconventional Monetary Policy Measures, International Journal of Central Banking, 12(3) :69-120.

Brunettı, C., Filippo,M., & Harris,J. (2011), Effects ofCentral Bank Intervention on the Interbank Market during the Subprime Crisis, Review of Financial Studies, 24(6):2053-2083.

Burlon, L., Notarpietro ,A.,& Pisani,M. (2018), The Macroeconomic Effects of An Open-Ended Asset Purchase Program, Banca D'Italia Eurosistema Temi Di Discussione Working Papers, 1185: 1-43.

Caballero, R. J., Hoshi,T., & K. Kashyap,A. (2008), Zombie Lending and Depressed Restructuring in Japan, The American Economic Review, 98 (5): 1943-1977. https://doi.org/ 10.1257/aer.98.5.1943

Casıraghı, M., Gaiotti,E., Rodano,L.,& Secchi,A. (2013),The Impact of Unconventional Monetary Policy on the Italian Economy During The Sovereign Debt Crisis, Banca D'Italia Eurosistema Questioni di Economia e Finanza OccasionalWorking Papers, 203:1-40.

Dınh, D.V. (2020), Impulse Response of Inflation to Economic Growth Dynamics: VAR Model Analysi.The Journal of Asian Finance, Economics and Business, 7(9): 219–228. https://doi.org/10.13106/jafeb

Work, F.,& Schwaab,B. (2013), Assessing Asset Purchases Within The ECB's Securities Markets Program. ECB Working Paper Series,1587 ,1-33.

Eser, F., & Schwaab,B. (2016), Evaluating The Impact of Unconventional Monetary Policy Measures: Empirical Evidence rom The ECB's Securities Markets Program. Journal of Financial Economics, 119 (1),147-167. https://doi.org/ 10.1016/j.jfineco.2015.06.003

Ferrando, A., Popov,A., & Udell,G.F.(2015). Sovereign Stress, Unconventional Monetary Policy, and SME Access to Finance.ECB Working Paper Series, 1820, 1-58.

Gambacorta, L., Hofmann,B.,& Peersman,G. (2014). The Effectiveness of Unconventional Monetary Policy at the Zero Lower Bound: A Cross-Country Analysi, Journal of Money, Credit and Banking, 46(4), 615-642. https://doi.org/10.1111/jmcb.12119

Kuhl, M.(2016), The Effects of Government Bond Purchases on Leverage Constraints of Banks and Non-Financial Firms,Deutsche Bundesbank Discussion Papers, 38,1-70.

Lewıs, V.,& Roth,M. (2017).The Financial Market Effects of the ECB's Asset Purchase Programs. Bundesbank Discussion Paper, 23: 1-20.

Mouabbı, S.,&Sahuc,J.G. (2019),Evaluating the Macroeconomic Effects of the ECB's Unconventional Monetary Policies.Document de Travail Working Paper, 2,1-29. https://doi.org/10.1111/jmcb.12628

Peersman, G. (2011), Macroeconomic Effects of Unconventional Monetary Policy in The Euro Area. ECB Working Paper Series, 1397,1-33.

Rao, B. B. (2007),Cointegration for the Applied Economist. London in U.K: Palgrave Macmillan.

Sahuc, J.G. (2016), The ECB's Asset Purchase Program: A Model-Based Evaluation. Economics Letters, 145,136-140. https://doi.org/10.1016/j.econlet.2016.06.009

Saka, O., Fuertes,A.M. & Kalotychou,E. (2015),ECB Policy and Eurozone Fragility: Was De Grauwe Right?,Journal of International Money and Finance, 54,168-185. https://doi.org/10.1016/j.jimonfin.2015.03.

Sheard,P.(2018),Quantitative Easing Explaining It and Dispelling the Myths.https://www.hks.harvard.edu/sites/default/files/centers/mrcbg/programs/senior.fellows/HKSSheardQEStudyGroup23Oct2018.pdf, Access Date: 01.03.2020, 1-6.

Szczerbowıcz, U. (2015), The ECB Unconventional Monetary Policies: Have They Lowered Market Borrowing Costs for Banks and Governments? International Journal of Central Banking, 11(4),91-127.