CARGA_INICIAL_FUNCAS_EUROPE_20200529
Since the start of the Covid-19 crisis there has been a heated debate regarding the use of government guarantees in order to support lending to the private sector.
Covid-19 credit guarantees in the eurozone Descargar artículo (formato PDF) Fecha: abril 2020 Miguel Carrión Álvarez, Funcas Europe (This piece has been edited from the original version with Addenda to reflect the Spanish government’s second tranche of guarantees approved on April 10.) The epidemic of the new Covid-19 coronavirus has forced one EU member state after another to adopt confinement measures resulting in a large and sudden reduction of economic activity. This is on top of the slowdown resulting from…
The ECB’s response to the Covid-19 crisis Descargar artículo (formato PDF) Fecha: marzo 2020 Miguel Carrión Álvarez, Funcas Europe In the past two weeks, the ECB has approved a fairly comprehensive package of measures to face the coronavirus crisis. These include expanded asset purchases, lower bank funding costs, and supervisory capital relief for banks. The one thing the ECB has not done is to lower headline interest rates, which caused an immediately negative market reaction. In practice, however, the ECB…
Post-crisis money markets, monetary policy and financial stability Descargar artículo (formato PDF) Fecha: enero 2020 Miguel Carrión Álvarez, Funcas Europe The money market, where cash is lent and borrowed wholesale, is a key component of the financial system. Broadly speaking money market transactions can be secured, when the borrower pledges some guarantee of repayment, typically using as collateral high-quality liquid assets such as government bonds; or unsecured, when the lending takes place without any guarantee. One of the consequences of…