by In a CEPR discussion paper, Christoph Trebesch and Jeromin Zettelmeyer argue that ECB bond buying had a large impact on the price of short and medium maturity bonds … However, the effects were limited to those sovereign bonds actually bought. We find little evidence for positive effects on market quality, or spillovers to close substitute bonds, CDS markets, or corporate bonds. A multiple equilibria view of the crisis would probably suggest otherwise.
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Dirk Niepelt considers the following as important: Bailout, Contributions, European Central Bank, European debt crisis, Greece, Liquidity, Monetary Policy, Notes, Solvency
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In a CEPR discussion paper, Christoph Trebesch and Jeromin Zettelmeyer argue that
ECB bond buying had a large impact on the price of short and medium maturity bonds … However, the effects were limited to those sovereign bonds actually bought. We find little evidence for positive effects on market quality, or spillovers to close substitute bonds, CDS markets, or corporate bonds.
A multiple equilibria view of the crisis would probably suggest otherwise.