During the crisis, the ECB modified its collateral framework to face increased liquidity needs of commercial banks. This has taken two forms: the minimum required rating for different classes of assets has been reduced and the haircut associated to these assets has evolved conditional on the...

During the crisis, the ECB modified its collateral framework to face increased liquidity needs of commercial banks. This has taken two forms: the minimum required rating for different classes of assets has been reduced and the haircut associated to these assets has evolved conditional on the...

We review the set of arguments in favour of adding permanently balance sheet policies to the central bank toolkit. Balance sheet policies could support financial stability and complement the role of the standard - pre-crisis - policy to enhance macroeconomic stability. There are two major...

The recent rise in euro area long-term interest rates could jeopardize the on-going recovery if interest rates went beyond what the fundamentals require. We investigate possible overshooting after identifying the main determinants of longterm interest rates in the euro area and in some of its...