RaboResearch - Economic Research

Special

Should the ECB consider issuing its own securities?

The issuance of securities by a central bank is a very market friendly instrument of open market operations, which already is used by many central banks all over the world. Now that the ECB faces the challenge of reducing bank liquidity with as little as possible disturbance of financial markets, it might also consider to issue ECB-securities. This would bring two advantages.

Special

EU recovery fund: What will be the impact?

The European Commission presented a recovery fund for the EU. Although there a quite some hurdles to be taken, a compromise does not look out of reach. The pooling of liabilities is further completes the European capital market.

Special

Should the ECB consider issuing its own securities?

The ECB could use Central Bank Securities to mop up liquidity. The use of this instrument may bring the additional advantage of the creation of a EMU-wide ‘safe asset’. This may bring advantages for the stability of the Eurozone.