Wirtschaftspolitischer Beitrag
ECB stepping on the brake(s) - monetary tightening in an abundant reserve system
Autoren
Erscheinungsdatum
DOI
10.2861/37563
Schlagworte
Geldpolitik
Europäische Union & Euro
Konjunktur Euro Raum
Confronted with a historic inflation surge, the ECB steps on the brake(s). While interest rate hikes are its primary tool, unconventional tools are also adjusted to strengthen the brake intensity. Quantitative tightening will reduce the stock of bonds in a slow process. The change from a scarce to an abundant reserve system will prevail. In contrast to previous monetary tightening cycles, in an abundant reserve system huge interest expenses result in central bank losses and fiscal costs for the coming years.
