Fiscal implications of the ECB’s Public Sector Purchase Programme

Fiscal implications of the ECB’s Public Sector Purchase Programme

The large Public Sector Purchase Programme (PSPP), which the ECB started in 2015 for monetary policy purposes, had major side effects on fiscal policy. One concerns the programme’s uncommon seigniorage effects. We find that the PSPP not only led to partly negative seigniorage gains, but also produce...

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Bibliografski detalji
Glavni autor: Lehment, Harmen
Format: Article ou chapitre numérique
Jezik:Français
Izdano: 2019
Teme:
central bank asset purchases
debt management
monetary-fiscal cooperation
seigniorage gains
Online pristup:Accès Université d'Orléans et IFPM
Accès Université d'Orléans et IFPM
id cairn-REOF_HS02_0089
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spelling cairn-REOF_HS02_0089REOFRevue de l'OFCE https://shs.cairn.info/revue-de-l-ofce-2019-HS-page-89?lang=en https://doi.org/10.3917/e.reof.hs02.0089 Fiscal implications of the ECB’s Public Sector Purchase Programme Lehment, Harmen2019 central bank asset purchasesdebt managementmonetary-fiscal cooperationseigniorage gainsfre Revue de l'OFCE | Supp. 2 | HS | 2019-08-02 | p. 89-111 | 1265-9576 REOF_HS025 The large Public Sector Purchase Programme (PSPP), which the ECB started in 2015 for monetary policy purposes, had major side effects on fiscal policy. One concerns the programme’s uncommon seigniorage effects. We find that the PSPP not only led to partly negative seigniorage gains, but also produced super-seigniorage gains resulting from negative interest rates on the excess reserves that were created by the programme. Another effect of the PSPP is its interference with fiscal debt management, thereby making fiscal budgets more vulnerable to changes in short-term interest rates. Finally, the experience with the PSPP suggests that fiscal policy should prepare for a greater role in fighting future recessions.Cairn free access
language Français
format Article ou chapitre numérique
building 0/Bibliothèque numérique/
1/Bibliothèque numérique/Cairn/
topic central bank asset purchases
debt management
monetary-fiscal cooperation
seigniorage gains
spellingShingle central bank asset purchases
debt management
monetary-fiscal cooperation
seigniorage gains
Lehment, Harmen
Fiscal implications of the ECB’s Public Sector Purchase Programme
topic_facet central bank asset purchases
debt management
monetary-fiscal cooperation
seigniorage gains
description The large Public Sector Purchase Programme (PSPP), which the ECB started in 2015 for monetary policy purposes, had major side effects on fiscal policy. One concerns the programme’s uncommon seigniorage effects. We find that the PSPP not only led to partly negative seigniorage gains, but also produced super-seigniorage gains resulting from negative interest rates on the excess reserves that were created by the programme. Another effect of the PSPP is its interference with fiscal debt management, thereby making fiscal budgets more vulnerable to changes in short-term interest rates. Finally, the experience with the PSPP suggests that fiscal policy should prepare for a greater role in fighting future recessions.
author Lehment, Harmen
author_facet Lehment, Harmen
author_sort Lehment, Harmen
title Fiscal implications of the ECB’s Public Sector Purchase Programme
title_short Fiscal implications of the ECB’s Public Sector Purchase Programme
title_full Fiscal implications of the ECB’s Public Sector Purchase Programme
title_fullStr Fiscal implications of the ECB’s Public Sector Purchase Programme
title_full_unstemmed Fiscal implications of the ECB’s Public Sector Purchase Programme
title_sort fiscal implications of the ecb’s public sector purchase programme
publishDate 2019
container_title
container_issue
url https://ezproxy.univ-orleans.fr/login?url=https://shs.cairn.info/revue-de-l-ofce-2019-HS-page-89?lang=en
https://ezproxy.univ-orleans.fr/login?url=https://doi.org/10.3917/e.reof.hs02.0089
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