Abstract
We examine the effect of European Central Bank’s (ECB’s) unconventional monetary policy measures on energy prices. Our results indicate that the non-standard ECB monetary policies during the recent financial crises had a significant and negative impact on energy prices. For example, we find that these policies accounted for approximately 10% of the price variance for the Light Crude Oil Futures Contract. Impulse Response Functions suggest that an increase in the ECB’s propensity to unconventional policy decreases energy prices for all five energy price proxies during the first two months after the monetary shock. Since these policies have now become part of a central bank’s arsenal during financial turmoil and may be used in future crises, these results shed light on their potential impact energy prices.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
