The European Central Bank's asset purchase programs, while intended to stabilize the economy, may have unintended side effects on financial stability. This paper aims at gauging the effects on financial markets, the banking sector, and lending to non-financial firms. Using a structural vector...

The German Bundesbank has since the 1970s focussed its monetary policy on controlling the rate of inflation. The price stability-oriented course in monetary policy was enshrined in the Bundesbank Act and in the Treaty on the Functioning of the European Union (TFEU) as part of the third stage of...