The Capital Markets Commission presents its CMC Working Paper No. 3 titled “The Impact of The Normalization of the ECB's Monetary Policy”, where Prof. Dr. Leef H. Dierks, Deputy Chairman of the CMC, analyses the impact on the forthcoming normalization of the ECB’s monetary policy could have on the monetary union’s equity, fixed income and foreign exchange markets, among others.
After more than a decade of historically unprecedented low interest rates and an extraordinarily accommodative monetary policy, recent developments point towards a normalization of the monetary policy in the euro area. Even though a rate hike, which would markedly enlarge the ECB’s monetary policy leeway, is unlikely to materialize before Q3 2019, Q4 2018 will see the ECB halt its asset purchase programs which, at the time of writing, amounted to roughly two and a half trillion euros. Following an analysis of the status quo, this paper seeks to analyse the impact the forthcoming normalization of the ECB’s monetary policy could have on the monetary union’s equity, fixed income and foreign exchange markets, among others.
CMC Working Paper No.3, July 2018. DOWNLOAD FULL VERSION
