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Full-Text Articles in Economic Policy
The European Central Bank's Securities Markets Programme (Ecb Gfc), Ariel Smith
The European Central Bank's Securities Markets Programme (Ecb Gfc), Ariel Smith
Journal of Financial Crises
The Eurozone struggled during the escalation of the sovereign debt crisis in 2010. In order to aid malfunctioning securities markets, restore liquidity, and enable proper functioning of the monetary policy transmission mechanism, the European Central Bank (ECB) instituted the Securities Markets Programme (SMP) on May 9, 2010. This program enabled Eurosystem central banks to purchase securities from entities in Greece, Ireland, Portugal, Italy, and Spain. The program ended on September 6, 2012, and evaluations of its effectiveness are mixed.
The European Central Bank's Three-Year Long-Term Refinancing Operations (Ecb Gfc), Aidan Lawson
The European Central Bank's Three-Year Long-Term Refinancing Operations (Ecb Gfc), Aidan Lawson
Journal of Financial Crises
The announcement of the three-year Long-Term Refinancing Operations (LTROs) by the European Central Bank (ECB) on December 8, 2011, signaled the beginning of the largest ECB market liquidity programs to date. Continued and increasing liquidity-related pressures in the form of ballooning financial market credit default swap (CDS) spreads, Euro-area volatility, and interbank lending rates prompted a much more forceful ECB response than what had been done previously. The LTROs, using a repurchase (repo) agreement auction mechanism, allowed any Eurozone financial institution to tap essentially unlimited funding at a fixed rate of just 1%. Because the three-year LTROs were so similar …