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  • Fiscal policy

Click to read the article below and then answer the questions:

ECB to rely more on bank lending as it shrinks balance sheet

  • What tool is the ECB moving away from?

  • What new tool(s) is the ECB looking to implement? 

  • How would the ECB implement monetary policy in the new environment? 

  • Explain the corridor. 

    What is the floor?

    What is the ceiling?

    How does the ECB affect the corridor?

  • How does the ECB’s approach compare to the approaches of the US Federal Reserve and the Bank of England?

Ariel Slonim at MRU Econinbox

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