Discover and read the best of Twitter Threads about #PEPP

Most recents (10)

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

#4giugno #Mes #NoMes #Lagarde #UE #Italia #Covid_19 #RecoveryFund #Conte #Europa
"Estendendo a 1350 miliardi il programma di acquisto di titoli di Stato in risposta all'emergenza pandemica (#PEPP, Pandemic Emergency Purchase Programme) la #BCE ha preso una decisione in qualche modo obbligata."
Cosi' il responsabile economico della Lega, senatore Alberto BAGNAI. "Come la Lega ha piu' volte sottolineato, sulla base della piu' elementare logica macroeconomica e dell'autorita' dei piu' importanti economisti mondiali, da Blanchard a Giavazzi a Buiter, l'unica via di uscita
Read 12 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
@giuslit ⏰“Oggi - 5.5.2020 - La #CorteCostituzionaletedesca (#Karlsruhe) - più che scagliarsi contro il #PSPP o il #PEPP, su quello aveva già scritto mesi fa - ha, attaccato frontalmente il monopolio dell'interpretazione del diritto #UE..”(segue)
- #LucaFantuzzi🤺…
@giuslit ”...da parte della #CortediGiustizia per riprendersi spazi (politici, più che giuridici) cui aveva parzialmente abdicato...”(segue)

- #LucaFantuzzi🤺@Luca_Fantuzzi…
@giuslit @Luca_Fantuzzi “..La sentenza, dunque, più che per gli economisti (nei prossimi mesi poco cambierà, io credo), dovrebbe interessare i giuristi per quello che dice e i politici per quello che comporta (ogni riferimento al #MES è puramente voluto).” ⛳️
- @Luca_Fantuzzi 🤺…
Read 5 tweets
A short #thread on the #Karlsruhe decision on the legality of the @ecb's #QE #PSPP ... (NOT #PEPP or #Covid QE)

My overall assessment ...

It's not good ... 3 or 4 /10 where 10/10 would have been carte blanche for the #ECB and 0/0 "QE is verboten", a disaster for the #Eurozone
First the headline bombshell "ECB decisions on the Public Sector Purchase Programme exceed EU competences" is a BIG deal ... the @BVerfG has directly accused the @ecb of violating the #EU constitution and the @EUCourtPress and #German government of complicity in this violation!
More precisely, #BverfG says the #ECB violated Art 5(1) and 5(4) on "#proportionality" by failing to demonstrate that it considered the "economic effects" of #QE before launching it, and that #Germany and the #ECJ failed to hold the Governing Council of the #ECB to this standard!
Read 9 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
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
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

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