State of the union: The financial crisis and the ECB's response between 2007 and 2009

Journal of Common Market Studies

Volumn 48, Issue SUPPL. 1, 2010, Pages 7-19

  Trichet, Jean Claude ^a  

^a EUROPEAN CENTRAL BANK   (Germany)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 77956017903     PISSN: 00219886     EISSN: 14685965     Source Type: Journal    
DOI: 10.1111/j.1468-5965.2010.02091.x     Document Type: Article

References (28)

1. Alessi L, Detken C. " Real-Time" Early Warning Indicators for Costly Asset Price Boom/Bust Cycles: A Role for Global Liquidity. 2009, ECB Working Paper No. 1039
2. Cheun S, von Köppen-Mertes I, Weller B. The Collateral Frameworks of the Eurosystem, the Federal Reserve System and the Bank of England and the Financial Market Turmoil. 2009, ECB Occasional Paper No. 107
3. De Santis RA, Favero CA, Roffia B. Euro Area Money Demand and International Portfolio Allocation: A Contribution to Assessing Risks to Price Stability. 2008, ECB Working Paper No. 926
4. Recent Developments in the Retail Bank Interest Rate Pass-Through in the Euro Area. Monthly Bulletin 2009, 2009:93-105. ECB, August, pp
5. The ECB's Monetary Policy Stance during the Financial Crisis. Monthly Bulletin 2010, 2010:63-71. ECB, January, pp
6. Gerdesmeier D, Roffia B, Reimers H-E. Asset Price Misalignments and the Role of Money and Credit. 2009, ECB Working Paper No. 1068
7. Mercier P. The Liquidity Management of the Eurosystem during the Financial Turmoil: August 2007 to February 2009. Forum Financier 2009, 2-3:96-104. No, pp
8. Moutot P, Vitale G. Monetary Policy Strategy in a Global Environment. 2009, ECB Occasional Paper No. 106
9. Papademos L. Financial Stability and Macro-Prudential Supervision: Objectives, Instruments and the Role of the ECB. 2009, Speech of 4 September 2009
10. Stark J. The Contribution of Monetary and Financial Statistics to the Conduct of Monetary Policy. A Strategic Vision for Statistics: Challenges for the Next Ten Years 2008, 43-52. In, Frankfurt a.M., ECB, pp.
11. Trichet J-C. The ECB's Enhanced Credit Support. 2009a, Keynote address at the University of Munich, 13 July 2009
12. Trichet J-C. The Financial Crisis and our Response so Far. 2009b, Keynote address at the Chatham House Global Financial Forum, 27 April 2009, New York
13. Trichet J-C. Credible Alertness Revisited. 2009c, Intervention at the symposium on 'Financial Stability and Macroeconomic Policy' sponsored by the Federal Reserve Bank of Kansas City, Jackson Hole, Wyoming, 22 August 2009
14. Trichet J-C. The ECB's Exit Strategy'. Speech at the ECB Watchers Conference, Frankfurt. 2009d, 4 September 2009
15. Trichet J-C. Systemic Risk. Clare Distinguished Lecture in Economics 2009e, University of Cambridge, 10 December 2009
16. See, for instance, the front-page article in the Financial Times of 29 January 2007, which reported: 'Trichet warns markets of a re-pricing of risks'.
17. Mercier (2009) for an account of the Eurosystem's liquidity management during the initial 18 months of the crisis.
18. This liquidity injection did not, however, change the overall amount provided during the maintenance period, as the ECB provided larger amounts of credit at the beginning of each reserve maintenance period and smaller amounts of credit at the end (a procedure known as 'frontloading'). See also Trichet (2009a,b).
19. The outstanding amount of LTROs increased from €150 billion in June 2007 to over €600 billion by the end of 2008. Over the same period, the total amount of outstanding liquidity almost doubled, peaking at €857 billion on 2 January 2009, more than 9 per cent of euro area GDP and nearly 4 per cent of total euro area MFI financial assets.
20. Preliminary empirical analysis suggests that, when comparing covered bond yields with a risk-free benchmark, it appears that German covered bond spreads have declined to below pre-2008 levels, whereas covered bond spreads in other euro area countries have reached their pre-Lehman levels.
21. For a detailed discussion of this concept, see Trichet, 2009e.
22. Stark, 2008
23. Papademos, 2009
24. Trichet, 2009c. For more information on the new areas of research that we are pursuing in this regard
25. Alessi and Detken, 2009
26. De Santis etal., 2008
27. Gerdesmeier etal., 2009
28. Moutot and Vitale, 2009