Five essays on monetary and macroprudential policy, lending standards and lockdown shocks

Abstract

This Doctoral Thesis empirically evaluates the effectiveness of monetary policy and macroprudential measures in the euro area. Consequently, this thesis analyses both, the immediate response of policymakers to mitigate impact of various financial and economic crises and the structural policy changes. Additionally, it investigates some of the key mechanisms behind crises. Specifi cally, it shows how various forms of (market) uncertainty reacted to an exacerbation of lockdown measures during the Covid-crisis in the US. Moreover, it analyses the macroeconomic consequences of credit supply and bank risk taking shocks, which is of substantial interest as lax credit standards have contributed to the environment leading to the 2007/08 great financial crisis. In total, this thesis consists of five studies that can be grouped into analyses focusing on bank lending, monetary policy and the identifi cation of lockdown shocks.