ECB - Working paper series

We establish basic facts about the external finance premium. Tens of millions of individual loan contracts extended to euro area firms allow studying the determinants of the external finance prem...

https://www.ecb.europa.eu//pub/pdf/scpwps/ecb.wp2934~c3addfeb73.en.pdf

We evaluate how the euro area economy would have performed since mid-2021 under alternative monetary policy strategies. We use the ECB’s workhorse estimated DSGE model and contrast actual polic...

https://www.ecb.europa.eu//pub/pdf/scpwps/ecb.wp2935~639250ee2b.en.pdf

Banks in the euro area can generate high-quality liquid assets (HQLA) by borrowing central bank reserves from the Eurosystem against non-HQLA collateral. This paper quantifies the extent of this ...

https://www.ecb.europa.eu//pub/pdf/scpwps/ecb.wp2933~8546fb6350.en.pdf

This paper investigates the sensitivity of the demand for safe government debt to currency unhedged and hedged excess returns in a sample of US mutual funds. We find evidence of active rebalancin...

https://www.ecb.europa.eu//pub/pdf/scpwps/ecb.wp2931~8b0e21c2d2.en.pdf

We analyze, for the first time, how firms choose the currency in which they price transactions in international trade of services and investigate, using direct evidence, whether the US dollar (US...

https://www.ecb.europa.eu//pub/pdf/scpwps/ecb.wp2932~3bbd264674.en.pdf

We evaluate the effects of contagion and common exposure on banks’ capital through a regression design inspired by the structural VAR literature and derived from the balance sheet identity. Con...

https://www.ecb.europa.eu//pub/pdf/scpwps/ecb.wp2929~19cda4a673.en.pdf

We study how millions of granular and weekly household scanner data combined with machine learning can help to improve the real-time nowcast of German inflation. Our nowcasting exercise targets t...

https://www.ecb.europa.eu//pub/pdf/scpwps/ecb.wp2930~05cff276eb.en.pdf

This study provides new evidence on the relationship between unconventional monetary policy and auction cycles in the euro area. Using proprietary data on purchases of public sector securities im...

https://www.ecb.europa.eu//pub/pdf/scpwps/ecb.wp2927~e373af333e.en.pdf

The evidence suggests that monetary policy transmission is asymmetric over the business cycle. Interacting financing frictions with a preference for liquidity provides an explanation for this fac...

https://www.ecb.europa.eu//pub/pdf/scpwps/ecb.wp2928~457d40bbd9.en.pdf

We shed light on the demand for a central bank digital currency (CBDC) as a means of payment, based on survey payment data. We provide a quantitative framework to assess transactional demand for ...

https://www.ecb.europa.eu//pub/pdf/scpwps/ecb.wp2926~a61b033b8b.en.pdf

Investment funds hold a disproportionately larger fraction of domestic relative to foreign stocks. Stock market development and familiarity (language and distance) are considered key determinants...

https://www.ecb.europa.eu//pub/pdf/scpwps/ecb.wp2924~b1233846e9.en.pdf

This paper extends Boone (2008) by introducing a competition measure at the individual firm level rather than for an entire market segment. It is based on the elasticity between profits and effic...

https://www.ecb.europa.eu//pub/pdf/scpwps/ecb.wp2925~3a392b240a.en.pdf

How a historic drop in bank deposits shapes banks’ loan supply? We exploit the effects of a large, and unexpected, increase in monetary policy rates to estimate the deposit channel of monetary ...

https://www.ecb.europa.eu//pub/pdf/scpwps/ecb.wp2923~e8621c033e.en.pdf

This paper analyses the consumer’s decision to apply for credit and the probability of the credit being accepted in the euro area during a period characterized by the unprecedented concomitance...

https://www.ecb.europa.eu//pub/pdf/scpwps/ecb.wp2922~1f550b10fb.en.pdf

This paper studies the impact of voluntary climate commitments by banks on their lending activity. We use administrative data on the universe of bank lending from 19 European countries. There is ...

https://www.ecb.europa.eu//pub/pdf/scpwps/ecb.wp2921~603e225101.en.pdf