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Euro Area Policies: Selected Issues Paper
Author:
International Monetary Fund. European Dept.
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Series:
IMF Staff Country Reports
Volume/Issue:
Volume 2013: Issue 232
Language:
English
Publication Date:
25 Jul 2013
DOI:
https://doi.org/10.5089/9781484347850.002
ISBN:
9781484347850
ISSN:
1934-7685
Pages:
72
Keywords:
ISCR; CR; bank; export; euro; lending; household debt; lending rate; debt sustainability; debt restructuring; deflation dynamics; debt reduction; euro area; Financial statements; Export performance; Collateral; Exports; Credit; Global
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This Selected Issues paper on Euro Area Policies 2013 Article IV Consultation highlights the monetary transmission mechanism and monetary policies. The European Central Bank has announced the Outright Monetary Transactions framework to address severe distortions in sovereign bond markets and safeguard monetary transmission. The cost of unsecured bond issuance remains elevated for both core and periphery banks, but there is a growing divergence between the two, driven mainly by rising periphery spreads. Weak growth and high levels of private balance sheet debt in the periphery are weighing on the health of bank balance sheets.
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Cover IMF Staff Country Reports
IMF Staff Country Reports
ISSN:
1934-7685
Publisher:
International Monetary Fund