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State of the Union: The Financial Crisis and the ECB's Response between 2007 and 2009
Author(s) -
TRICHET JEANCLAUDE
Publication year - 2010
Publication title -
jcms: journal of common market studies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.54
H-Index - 90
eISSN - 1468-5965
pISSN - 0021-9886
DOI - 10.1111/j.1468-5965.2010.02091.x
Subject(s) - financial crisis , state (computer science) , citation , political science , european union , keynesian economics , economics , law , algorithm , computer science , international economics
In the global financial turmoil that started in 2007 and erupted into a financial crisis in 2008, the European Central Bank (ECB) has confirmed its capacity to take bold action to foster financing conditions and enhance its credit support to the euro area economy, while remaining fully aligned with its primary mandate of safeguarding medium-term price stability. The ECB has also been co-operating closely with other central banks worldwide: the network of global central bank co-operation has been as dense as the integration in the global financial system itself. This article reviews and explains in detail how both the ECB and the Eurosystem – the latter comprising the ECB and the 16 national central banks of the euro area countries – responded to the financial tensions in 2007 and the intensification of the crisis in 2008 and 2009. In this sense, the article is backward looking. The cut-off date for data used in this article is February 2010. More recent developments are not covered, in particular, the adjustment programme for Greece negotiated by the International Monetary Fund and the European Commission, in liaison with the ECB, and the Securities Markets Programme, which was adopted by the ECB in response to severe tensions in some segments of the debt securities market in early May 2010.