The Transformation of the European Central Bank Anticrisis Tools
This article deals with the activity of the European Central Bank amid the financial crisis 2008-2009, Eurozone debt crisis, long post-crisis recovery, COVID-19 pandemic and current economic situation. The ECB has been expanding the variety of its tools along with resorting to non-conventional methods, which is still relevant today. In this paper, the authors examine such non-standard ECB instruments as asset purchase programs, new elements in long-term refinancing operations and the Transmission Protection Instrument. The research is aimed to assess non-conventional ECB tools applicable to deal with crises and post-crisis recovery. The study is of scientific value since it systematizes and generalizes the experience the ECB acquired during the aforementioned crises. The method of comparative analysis is applied to trace the evolution of the ECB response to the crises observed in the work. Methods of economic analysis and systematization of statistical data, as well as the results of other scientific studies, detect and structure information about the anticrisis tools of the ECB. The authors scrutinize the types of non-conventional tools which ECB used during the crises of the 21st century, with examining new elements added to standard ECB tools. The positive eff ect the use of non-traditional instruments has been producing is assessed. The authors have reached the conclusion that it is non-conventional tools of monetary policy that eff ectively prevent crises and preclude their exacerbation. Besides, the research accentuates risks and disadvantages of the application of such tools in the Eurozone.
European Central Bank; Eurozone; global financial crisis; sovereign debt crisis; coronacrisis
Yana Toporikova, Mariia Savenkova