The Euro area periphery sovereigns' fiscal positions and unconventional monetary policy

Oliver Hülsewig, Johann Scharler

We explore the reaction of the euro area periphery sovereigns' fiscal positions to an unconventional monetary policy shock. We estimate panel vector autoregressive (VAR) models over the period 2010-2018, and identify the shock by imposing sign restrictions. Our results suggest that the sovereigns' fiscal positions improve in response to the economic expansion induced by an expansionary non-standard monetary policy innovation which lowers sovereign CDS spreads. Moreover, we observe that fiscal discipline is maintained rather than undermined.

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Year of publication:	January 2020
Authors:	Hülsewig, Oliver ; Scharler, Johann
Publisher:	Munich, Germany : CESifo, Center for Economic Studies & Ifo Institute
Subject:	euro area periphery sovereigns \| fiscal position \| unconventional monetary policy \| panel vector autoregressive model \| Eurozone \| Euro area \| EU-Staaten \| EU countries \| Geldpolitik \| Monetary policy \| VAR-Modell \| VAR model \| Öffentliche Schulden \| Public debt \| Öffentliche Anleihe \| Public bond \| Finanzpolitik \| Fiscal policy \| Wirkungsanalyse \| Impact assessment \| Quantitative Lockerung \| Quantitative easing

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Extent:	1 Online-Ressource (circa 28 Seiten) Illustrationen
Series:	CESifo working papers. - München : [Verlag nicht ermittelbar], ISSN 2364-1428, ZDB-ID 2065232-X. - Vol. no. 8041 (2020)
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Graue Literatur ; Non-commercial literature ; Arbeitspapier ; Working Paper
Language:	English
Other identifiers:	hdl:10419/215043 [Handle]
Classification:	E52 - Monetary Policy (Targets, Instruments, and Effects) ; E62 - Fiscal Policy; Public Expenditures, Investment, and Finance; Taxation ; H62 - Deficit; Surplus ; H63 - Debt; Debt Management
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10012154910