The effect of the European Central Bank’s asset purchase programmes on Spain’s public finances

Series: Occasional Papers. 2409.

Author: Pablo A. Aguilar, Mario Alloza, James Costain, Samuel Hurtado and Jaime Martínez-Martín.

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The effect of the European Central Bank’s asset purchase programmes on Spain’s public finances (1 MB)

Abstract

This paper empirically quantifies the effect on Spain’s public finances of the asset purchase programmes implemented in the euro area between 2015 and 2022. Specifically, it evaluates the impact of the ECB’s Asset Purchase Programme (APP) and Pandemic Emergency Purchase Programme (PEPP) on Spanish public revenue, expenditure, deficit and debt. The results suggest that these programmes have had a significant cumulative downward effect on the level of public debt.