I wish I could talk about the financial crisis in … The ECB failed to provide stimulus when needed, and as a result the Eurozone might slip into a low-inflation Current Eurosystem staff projections assume a decline in economic activity of almost 9% in the euro area in 2020, and of around 7% in Germany (Slide 2, left). The ECB’s Monetary Policy Response to the COVID-19 Crisis (updated 25 September 2020) The European Central Bank’s (ECB’s) Governing Council took the main decisions on monetary policy measures to address the economic fallout of the COVID -19 pandemic during its regular meetings on . We first sketch how central banks have used unconventional monetary policy measures by using three indicators based on the composition of the balance sheet of eleven central banks. * * * Introduction Ladies and Gentlemen, It is a great pleasure for me to be here and to discuss with you the ECB’s monetary policy during the crisis. 12 March 2020, It argues that the US approach has been much more aggressive and proactive. In a little over a decade the European Central Bank found itself fighting three considerable crises: the Great Recession in 2008, the sovereign-debt crisis in 2011-2012 to today’s pandemic-induced recessions. To what extent is Greece’s current economic crisis the result of monetary policy misalignment between the European Central Bank and Greece? Through the stabilising effect of our measures, the current course of the ECB’s monetary policy has decisively contributed to effectively preventing the fragmentation of the euro area, alleviating the financial consequences of the crisis and, by doing so, preserving jobs and investment. important at the start of the ECB, when the financial crisis hit in 2008 and during the recent low- inflation recovery. This column compares the monetary policy responses to the Crisis by the Fed and the ECB. Second, financial stability and supervisory issues received particular attention The event dummies contain the most important monetary policy measures conducted during the crisis: the SMP, the various announcements related to the OMT, several non-standard LTRO operations, the lowering of the rate on the ECB’s deposit facility to 0 percent, and the first two rounds of the CBPP. Although the Great Recession was viewed as a US problem, the Eurozone was affected by it from the start. Downloadable! We use a risk adjusted Taylor Rule to examine Greece’s monetary policy from 1993 to the present. Our analysis suggests that although the ECB’s balance sheet has increased dramatically during the crisis, the non-standard monetary policy measures had only a moderate impact on the composition of the ECB’s balance sheet compared to other central banks, such as the Fed and the Bank of … Using a tool created during the global financial crisis, the ECB can exchange euros for foreign currencies and lend those currencies to banks in the euro area. The re … the European Central Bank, at the Tenth Economic Policy Conference, Málaga, 21 October 2011. The Euro is a project without precedent and under Mario Draghi the ECB was a leading actor in world monetary policy. SPEECH Frankfurt am Main, 27 June 2020 The coronavirus crisis is having serious humanitarian and economic consequences.