Discover and read the best of Twitter Threads about #PEPP

Most recents (21)


1) Son toplantıda öne çıkan bu kelimeyi daha sık duyacağız gibi.🤔

Avrupa Merkez Bankası Yönetim Konseyi bugün "mevcut piyasa koşullarını tartışma" amacına özgü bir toplantı kararı aldı. Takvimde daha önce yer almayan bu görüşme yakından izleniyor.
2) Öncelikle #fragmentation kavramının ne anlama geldiğine bakalım o hâlde:

Türkçe olarak "parçalarına ayrılma, bölünme" şeklinde ifade edebileceğimiz bu kavram #ECB açısından para politikasının aktarım mekanizmasında bozulma işaretidir ki bu da politikanın etkisini azaltabilir.
3) Aşağıdaki grafikte 10 yıllık devlet tahvillerinin getirilerine yer verdim.

#Almanya en altta ve siyah eğriyle belirtilirken #Yunanistan mavi, #İtalya kırmızı, #İspanya sarı ve #Portekiz yeşil ile gösterilmiştir ve ayrışmaya daha önce dikkat çekmiştim.

#PIGS #Yields #Spread
Read 11 tweets
The #ECB waits and see.

#APP might be concluded in the third quarter of 2022. Or not.
At any rate there is no end date in sight for the end of reinvesting

Here is the carefully worded statement
Interest rates will remain at current levels until well after APP is over, meaning at least all of 2022. Possibly longer
Read 5 tweets
For those of you looking at weekly #PEPP purchase numbers, let me give you a brief explainer how to read our numbers. For PEPP, there are three types of publications: weekly, monthly and bimonthly. #NerdyThread #ECBWatchers #Servicetweet @ecb 1/11…
On Mondays at 15:45 CET, we publish the Eurosystem’s PEPP holdings (at amortised cost), as of the previous Friday, on our website: 2/11
By taking the difference to the previous week, one obtains the *net* purchases for the previous trading week. This is the difference between gross purchases *settled* in that week (i.e. traded two trading days earlier, so from THU to WED) and redemptions (from MON to FRI). 3/11
Read 11 tweets
Interesting debate between @BJMbraun
and @mh0rvath now live at #nextgencentralbanking conference. Issues of institutional amnesia, strategic ignorance and democratic control of central banks by
@BJMbraun, whose paper is here:…
@mh0rvath responds by arguing that the fact that central banks actions have wider effects is often benign or even positive. Moreover, there is nothing progressive in dismantling CBI (mentioning Hungary as an example)
@mh0rvath's argument that central banks evolved into focusing on price stability because "that is what they are good at doing" is a very simplified view on the various conflicts related to the historical emergence of CBI and the price stability mandate (tbf he only had 5 minutes)
Read 14 tweets
1/ The #ECB monetary policy decisions are out.

A lot of stuff. Nothing really comes as a surprise…
2/ Interest rates are unchanged, and will remain so until inflation is robustly close (but below) to 2%
3/ #PEPP:
a) It is extended until March 2022
b)Envelope increased of €500bn (total €1850bn)
c) It is rolled over until at least the end of 2023
Read 7 tweets
#BCE Thread
Il mercato sta cercando circa 500 miliardi di euro in più di PEPP, più altre OMRLT con condizioni potenzialmente meno rigide. Pensi che sia quello che devi fare perché il mercato se lo aspetta?
Non ci sentiamo obbligati a fare ciò che il mercato si aspetta da noi. Siamo guidati dal nostro mandato. Ci sono una serie di parametri importanti che possiamo modificare. Non è solo l'importo, è anche la durata. E si tratta di comunicazione.
Ciò che è chiaro è che dall'inizio della pandemia, il #PEPP e le #OMRLT si sono dimostrati altamente efficaci. Pertanto, è probabile che questi siano gli strumenti principali per la nostra ricalibrazione.
Così @Isabel_Schnabel membro del Comitato esecutivo della BCE oggi
Read 4 tweets
On Friday, I gave a speech at Deutscher @juristentag about the distributional effects of the COVID-19 pandemic and the danger of “unequal scars”. My goal was to add a European dimension to the debate. Here is my usual Twitter summary, including some of the charts. 1/11
The pandemic is a global shock that hit all euro area countries almost simultaneously. But it has become increasingly clear that the pandemic has very different impacts on different countries, as can be seen from the @EU_Commission’s forecast of economic growth. 2/11
There is a negative correlation between the projected fall in GDP for 2020 and (a) the extent of government-imposed restrictions, measured by the Oxford Stringency Index, and (b) the dependency on tourism. 3/11
Read 11 tweets
Che cosa significa l’acronimo #MES? Versione integrale #NoMes (1/50)
Il Fondo Salva Stati può effettivamente salvare gli Stati? #Mes #NoMes Versione integrale (2/50)
Esiste il #Mes senza condizionalità? #NoMes Versione integrale (3/50)
Read 49 tweets
Die #EZB muss endlich ihren Job machen dürfen. Dazu muss das Mandat der EZB geändert werden. Unabhängigkeit ist jedoch kein Blankoscheck wie in der Euro-Krise. Der Bundestag braucht einen geldpolitischen Dialog mit der Bundesbank nach dem Vorbild des Europäischen Parlaments. (1)
Anleihekäufe gehören zum Instrument der Geldpolitik von Zentralbanken. Auch jede Zinsentscheidung wirkt sich auf die Wirtschaft aus & ihre Effekte müssen Zentralbanken in den Blick nehmen. Die ökonomische Kritik des #Bundesverfassungsgerichts ist daher schwer nachvollziehbar. (2)
Die Staatsfinanzierung ist der EZB nach den #EU-Verträgen verboten. Die EU-Verträge zwingen die #EZB, so zu tun, als ob sie keine monetäre Staatsfinanzierung betreibe. (3)
Read 10 tweets
This thread is for those of you who don’t find the time to read my #PetersbergSpeech in full. Link to English translation (including slides):…. Link to original German version:…. Op-ed @welt (in German):…. 1/11
Main message: Without the #PEPP and our other measures, we would now presumably be in the midst of a severe financial crisis. The measures taken by the ECB are (1) necessary, (2) suitable and (3) proportionate to ensure price stability in the euro area. 2/11
Important clarification: This speech is not about #PSPP, subject to a court case @BVerfG. It is about the measures taken in response to the pandemic, designed specifically for the pandemic & containing own safeguards to protect fundamental principles of the currency union. 3/11
Read 11 tweets
The @ecb responds to the @BVerfG: “The PEPP and the APP were proportionate measures under the current conditions for pursuing the price stability objective, with sufficient safeguards having been built into the design of these programmes...”…
@ecb further explains: “the proportionality assessment of any monetary policy measure had to consider, among other things, the degree to which the measure contributed to achieving the monetary policy objective [...] and possible unintended side effects [...].”
And, reiterates proportionality a third time wrt to the #PEPP: “the PEPP was a measure which was proportionate to counter the serious risks to price stability, the monetary policy transmission mechanism and the economic outlook in the euro area [...].”
Read 4 tweets
@nzingaretti @sole24ore IL #PEPP ATTUALE VALE 6 #MES. La #BCE ha quasi raddoppiato il PEPP, da 750 a 1350 miliardi (di cui 230 circa per l'Italia), METTENDO ALL'ANGOLO L'USO DEL MES. Consideriamo che, allo stato attuale, meno di 240 miliardi dei 1350 messi a disposizione sono stati impiegati... 1/3
@nzingaretti @sole24ore ... Con questa aggiunta la capacità di tiraggio è enorme. Il rendimento del #BTP è andato giù. Caro ´@nzingaretti, avete ridotto la #sanità ai minimi termini coi vostri PIANI DI RIENTRO. Fate bene ora ad ammettere di aver sbagliato, ma per cortesia abbandonate uno... 2/3
@nzingaretti @sole24ore ... strumento fallimentare (#Grecia docet) come il #MES, legato all'#austerity. Non è ora di cambiare? 3/3
Read 3 tweets
Es ist sinnvoll wenn #EZB Staatsschulden garantiert damit Euro Staaten aus dem Corona Schock heraus wachsen können. Es muss für #PEPP Programm weiterhin gelten Kürzungsauflagen wie bei der Euro Krise zu unterlassen!
und auch jenseits des Kapitalschlüssels der Mitgliedsstaaten Staatsanleihen zu kaufen. Sonst wäre dies wie den Patienten künstlich zu beatmen und ihm gleichzeitig Blut abzunehmen.
Das Mandat der #EZB sollte aber geändert werden damit sie auch Wachstum und Jobs unterstützen und Staaten finanzieren darf, um weitere Konflikte mit dem Bundesverfassungsgericht zu vermeiden. Nach der Pandemie müssen auch Vermögende in Euro Staaten in Pflicht genommen werden!
Read 3 tweets
In my interview with @mastrobradipo @repubblica, I argue that the @ecb has responded swiftly and forcefully to the deep crisis that Europe is facing. The impact of our measures is substantial, and we stand ready to expand all of them, as needed, in line with our mandate. 1/6
Many of the #ECB’s monetary policy measures are bank-based, which is crucial for countries like Italy where small and medium-sized enterprises play an important role. The #ECB always assesses carefully that its measures are suitable, necessary and proportionate. 2/6
We need to make sure that our monetary policy is transmitted to all parts of the euro area. Diverging spreads are often a sign of fragmentation, and we are fully committed to countering such developments. The #PEPP is the right policy tool in this respect. 3/6
Read 6 tweets
Yesterday the Governing Council @ecb took important decisions, further easing the liquidity conditions for banks & fostering lending to the economy. Philip Lane provides a comprehensive explanation of the macro environment & our measures in a recent blog post. #ECBexplains 1/12
I will add some technical explanations, starting with the #TLTROs, our targeted longer-term refinancing operations. This graph shows the rates for a bank that met the lending threshold of 0% under the old TLTRO (12 March), giving rise to more favourable rates. 2/12
Under the new TLTRO (30 April), banks meeting the lending threshold of 0% pay even lower rates in the “pandemic period”: currently -1% (versus -0.75% before). The assessment period for the lending threshold now starts one month earlier to reward lending in March. 3/12
Read 12 tweets
All eyes will be on the @federalreserve and the @ecb policy meetings this week, particularly as the @EUCouncil meeting last week was directionally encouraging but lacking in #policy specificity.
Regarding the #Fed, we expect the Committee to reiterate its guidance that the target range for the federal funds rate will remain at zero until after #coronavirus-related disruptions to the #economy have healed.
Further, while the #FOMC will have to update its statement a good deal to better reflect the severity of the #economic contraction underway, it will also take the opportunity to describe the transition from emergency support of market functioning to a long-term #LSAP regime. Image
Read 6 tweets
Avui dia de #SantJordi pots adquirir electrònicament el meu darrer llibre #QuèFanElsBancsCentrals en format electrònic al web del @grup62:
Avui a partir de 2/4 de 9 del matí seré a @elsmatins de @tv3cat per tal comentar què podem esperar del Consell Europeu, que debatrà el paquet econòmic per a la reactivació de la UE.
Moltes gràcies a @elsmatins de @tv3 per convidar-me a valorar què podem esperar de la cimera de la UE d’avui. @ernesturtasun, jo també trobo a faltar debatre amb tu sobre economia, l’euro i els rescats! Bona Diada de #SantJordi !!!!
Read 151 tweets
sintesi tratta da:
su articolo Giavazzi-Tabellini:…
#PEPP (programma di acquisto #BCE per limitare problemi di liquidità e speculazione in zona euro)
coprirebbe solo 1 parte del fabbisogno (1/9)
finanziario degli stati membri;
proposta: integrare con titoli a 50, 100 anni o perpetui.
1) come in uno shock bellico, la ricostruzione andrà affidata a più generazioni
2) darebbero un segnale del tipo #WhateverItTakes (2/9)
(escludere crisi zona eu già nel pieno crisi covid)
SPECIFICHE: ogni paese emetta i suoi titoli (tutti con medesime caratteristiche) garantiti dalla capacità fiscale dei singoli stati membri.
1) supporto bce: tassi bassi (3/9)
Read 15 tweets
Q: What does #ContactTracing look like now, what could it look like in the future and do I need to be worried about privacy?

A: When an individual tests positive for #COVID, staff reach out to identify their close contacts/public spaces they may have visited while contagious.
Based on this information, staff will determine if a contact is at low, medium or high risk of contracting #Covid_19. Staff will contact people who are at medium or high risk to notify them and provide instructions for self-quarantine.
More here about how #coronavirus contacts are traced:…
Read 8 tweets
This is another very important part of our crisis package @ecb of March 18, which will facilitate the access of banks to our liquidity operations by temporarily easing collateral standards, thereby supporting bank lending to the economy. 1/5
5 important measures: (1) Expanding the use of credit claims as collateral through ACC (additional credit claim) frameworks: accepting government-guaranteed loans as collateral, facilitating acceptance procedures for ACC frameworks & reducing reporting requirements. 2/5
(2) Lowering the minimum size for accepting credit claims. (3) Raising the concentration limit on unsecured bank bonds within the collateral pool. (4) Granting a waiver to accept Greek government bonds as collateral. 3/5
Read 5 tweets
The @ecb response to #COVID19.

My new blog (link below) and a thread on what #centralbanks should do to face the crisis

In short
- Households & firms need massive emergency #credit to cope with #COVID19
- #centralbanks are critically accommodating credit markets
- CBs must guarantee sustainable credit conditions
- CBs must ensure that credit go where it's needed
- #HelicopterMoney is option
#fiscalpolicy is crucial to ensure most vulnerable get the help needed. Ambitious fiscal plans have been pledged.

Volume and price countries get on markets is key to scale-up public response to #COVID19 and for #sustainability of sovereign debt.

Read 9 tweets

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