PANDEMIC BONDS AS A NON-STANDARD MEASURE OF THE EUROPEAN CENTRAL BANK MONETARY POLICY
PANDEMIC BONDS AS A NON-STANDARD MEASURE OF THE EUROPEAN CENTRAL BANK MONETARY POLICY

Summary/Abstract: The health crisis caused by the COVID-19 has, in addition to human lives, left far-reaching consequences for companies and the financial sector. Faced with a sudden lack of liquidity in the financial and real sectors, central banks in developed countries started purchasing various segments of assets. To this end, the European Central Bank (ECB) started purchasing securities only to calm the consequences of the pandemic crisis (Pandemic emergency purchase programme, PEPP). Since the initial purchase announcement worth 750 billion euros, the ECB offered a purchase worth as much as 1,850 billion euros under the program. The aim of the paper is to analyze the PEPP measures taken by the ECB to check whether they provided the necessary support to the banking sector in its smooth lending to the economy and citizens during the pandemic. In order to avoid a negative impact on monetary trends, in late March2022, the ECB suspended the further purchase of securities under the PEPP, with the obligation to reinvest the due amount of the collected debt by the end of 2024

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