Series: Analytical Articles.
Author: Pablo Burriel, Francisco Martí and Javier J. Pérez.
Topics: Monetary policy | International Economy | European Union | General government.
Full document
Abstract
Unconventional monetary policy measures implemented by the European Central Bank in recent years have helped to reduce interest rates on sovereign debt in the euro area as a whole. In addition to the direct impact on debt servicing payments, monetary policy conduct in the most recent period has had positive macroeconomic effects which have indirectly impacted the cyclical revenue and expenditure items in the government budget. This article approximately quantifies both direct and indirect effects for the main countries in the euro area.