Arbeitspapier
Fiscal implications of the ECB's public sector purchase programme (PSPP)
The large Public Sector Purchase Programme (PSPP) which the ECB started in 2015 on the basis of monetary policy purposes, had major side-effects on fiscal policy. One concerns the programme's uncommon seigniorage effects. We find that the PSPP not only led to partly negative seigniorage gains, but also produced super-seigniorage gains resulting from negative interest rates on the excess reserves which have been created by the programme. Another effect of the PSPP is its interference with fiscal debt management, thereby making fiscal budgets more vulnerable to changes in short-term interest rates. We also find that the experience with the PSPP suggests that fiscal policy should prepare for a greater role in fighting future recessions.
- Language
-
Englisch
- Bibliographic citation
-
Series: Kiel Working Paper ; No. 2107
- Classification
-
Wirtschaft
- Subject
-
central bank asset purchases
seigniorage gains
debt management
monetary-fiscal cooperation
- Event
-
Geistige Schöpfung
- (who)
-
Lehment, Harmen
- Event
-
Veröffentlichung
- (who)
-
Kiel Institute for the World Economy (IfW)
- (where)
-
Kiel
- (when)
-
2018
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Lehment, Harmen
- Kiel Institute for the World Economy (IfW)
Time of origin
- 2018
Other Objects (12)
Fiscal implications of the ECB's public sector purchase programme (PSPP)
Funding behaviour of debt management offices and the ECB's Public Sector Purchase Programme
Dissecting long-term Bund yields in the run-up to the ECB's Public Sector Purchase Programme
Dissecting long-term Bund yields in the run-up to the ECB's Public Sector Purchase Programme
Aid illusion and public sector fiscal behaviour
Fiscal sociology : public auditing
The ECB's Fiscal Policy
The macroeconomic implications of public sector deficits
The macroeconomic implications of public sector deficits
Public sector net worth as a fiscal target
Decentralising the public sector: What Drives Fiscal Decentralisation?
The ECB's asset purchase programme: an early assessment
Fiscal implications of the ECB's public sector purchase programme (PSPP)
Funding behaviour of debt management offices and the ECB's Public Sector Purchase Programme
Dissecting long-term Bund yields in the run-up to the ECB's Public Sector Purchase Programme
Dissecting long-term Bund yields in the run-up to the ECB's Public Sector Purchase Programme
Aid illusion and public sector fiscal behaviour
Fiscal sociology : public auditing
The ECB's Fiscal Policy
The macroeconomic implications of public sector deficits
The macroeconomic implications of public sector deficits
Public sector net worth as a fiscal target
Decentralising the public sector: What Drives Fiscal Decentralisation?
The ECB's asset purchase programme: an early assessment
Fiscal implications of the ECB's public sector purchase programme (PSPP)
Funding behaviour of debt management offices and the ECB's Public Sector Purchase Programme
Dissecting long-term Bund yields in the run-up to the ECB's Public Sector Purchase Programme
Dissecting long-term Bund yields in the run-up to the ECB's Public Sector Purchase Programme
Aid illusion and public sector fiscal behaviour
Fiscal sociology : public auditing
The ECB's Fiscal Policy
The macroeconomic implications of public sector deficits
The macroeconomic implications of public sector deficits
Public sector net worth as a fiscal target
Decentralising the public sector: What Drives Fiscal Decentralisation?