Christian Helbo Andersen

Bio: Christian Helbo Andersen is an academic researcher. The author has contributed to research in topics: Monetary policy & Risk premium. The author has an hindex of 1, co-authored 1 publications receiving 2 citations.

Unconventional Monetary-Policy Measures

Abstract: Most central banks reduced their monetary-policy interest rates strongly during the financial crisis, to a level of zero or very close to zero in the major advanced economies. Hence the possibilities of supporting these economies by reducing interest rates had been exhausted. To prevent a lengthy period of sluggish growth and falling prices, several central banks have instead chosen to ease monetary policy by means of "unconventional monetary-policy measures". These include liquidity support such as expansion of existing lending facilities or implementation of new facilities to improve banking system liquidity. Another measure has been asset purchases. This may entail "credit easing", i.e. targeted purchases of securities in specific markets where risk premia have been pushed up to a level assessed to be out of sync with the economic fundamentals, or purchases of long-term securities in order to reduce long-term yields in general, thereby stimulating economic activity. The latter is known as quantitative easing. This article describes the content and purposes of the various unconventional measures launched by the European Central Bank, ECB, the Bank of England, the Bank of Japan and the US Federal Reserve, followed by a description of how these initiatives are assessed to affect the financial markets and the macroeconomy. Finally, on the basis of empirical studies, the article looks at whether these measures have had the intended effects. Most studies indicate that both the Federal Reserve's and the Bank of England's asset purchase programmes have reduced market yields, although opinions differ as to the size of the impact. At the same time, the asset purchase programmes seem to have boosted equity prices and other asset prices. The effects on the real economy are more difficult to quantify, but again many studies point to a positive impact. The ECB's liquidity support measures are assessed to have narrowed spreads between collateralised and uncollateralised money-market loans, and the ECB's purchase programmes have also helped to strengthen the efficiency of the monetary-policy transmission mechanism.

The sovereign debt crisis and the euro area

Abstract: This publication collects the papers presented at the workshop entitled "The sovereign debt crisis and the euro area", held at the Bank of Italy in Rome on 15 February 2013. In recent years the Economic Research and International Relations Area of the Bank of Italy has conducted several analyses on the impact of the sovereign debt crisis on the financial system and the economy in Italy and other euro-area countries. The workshop provided a first opportunity to discuss the results of those analyses with representatives of the academic world. The volume comprises three sections, which examine the main mechanisms whereby the tensions in the government bond markets due to the sovereign debt crisis were transmitted to the banking system and then to the real economy.

Central Banks on the Cross Roads - The Case of Macedonia

Abstract: We focus on the use of unconventional measures implemented during the financial crisis and their impact on operational efficiency and independence of the central banks, including the National bank of Republic of Macedonia (NBRM). Measuring the impact of the new policies on the independence and operational efficiency of the central banks, we try to assess their capacity to maintain the price stability as primary monetary policy objective. In the paper the following methods are used: quantitative method, comparative method, particularly in comparison of the level of operational efficiency and the independence of central banks, as well as econometric method applied in operational efficiency analysis of the selected group of countries (developed, developing countries and countries in transition). As the other central banks, NBRM face the challenge to preserve its role in maintaining price and financial stability and economic strength of the country, without jeopardizing its independence. During the crisis, in coordination with other economic policies, NBRM succeeded to maintain macroeconomic stability and contributed to the mitigation of internal and external economic shocks. Also, NBRM managed to keep very high level of its legal and factual independence, measured by the standard indicators. However, the achievement of these multiple goals, resulted in decrease in the level of its operational efficiency, as it was case with the other central banks analyzed in this paper. Main message is that central banks have to undertake coordinated measures to fulfill their goals but also to take some measures to improve optimal level of efficiency.