European Central Bank announcement of Outright Monetary Transactions

E359165

crisis management measure monetary policy announcement unconventional monetary policy tool

The European Central Bank announcement of Outright Monetary Transactions was a pivotal 2012 policy pledge to buy distressed euro-area government bonds, widely credited with calming financial markets and stabilizing the Eurozone during its sovereign debt crisis.

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All labels observed (3)

Label	Occurrences
European Central Bank announcement of Outright Monetary Transactions canonical	1
Mario Draghi "whatever it takes" speech of 26 July 2012	1
Outright Monetary Transactions policy design	1

Statements (47)

Predicate	Object
instanceOf	crisis management measure ⓘ monetary policy announcement ⓘ unconventional monetary policy tool ⓘ
aimedAt	preserving the euro ⓘ reducing sovereign bond yields in distressed member states ⓘ restoring monetary policy transmission in the euro area ⓘ stabilizing the Eurozone sovereign debt markets ⓘ
announcedAt	ECB Governing Council meeting ⓘ
announcedBy	Mario Draghi ⓘ
announcedInYear	2012 ⓘ
announcedOn	2012-09-06 ⓘ
appliesTo	euro area government bonds ⓘ
belongsTo	Eurozone crisis policy framework ⓘ
challengedIn	Federal Constitutional Court of Germany ⓘ surface form: German Constitutional Court proceedings
communicationTool	forward guidance on backstop for sovereign bonds ⓘ
concerns	purchases of short-term sovereign bonds ⓘ
conditionalOn	beneficiary country requesting EFSF/ESM programme ⓘ compliance with an EU/IMF adjustment programme ⓘ strict and effective conditionality ⓘ
context	European sovereign debt crisis ⓘ
criticizedBy	Bundesbank Executive Board members ⓘ surface form: German Bundesbank leadership
designedTo	counter self-fulfilling market panic ⓘ separate liquidity concerns from solvency concerns ⓘ
effectOnMarkets	calmed financial markets ⓘ reduced sovereign bond spreads in stressed countries ⓘ stabilized investor confidence in the euro area ⓘ
hasOfficialName	Outright Monetary Transactions ⓘ
implementationStatus	never activated in practice ⓘ
introducedInstrument	Outright Monetary Transactions programme ⓘ
judicialOutcome	found compatible with EU law by the CJEU ⓘ
legalBasisClaimed	ECB mandate to ensure monetary policy transmission ⓘ
linkedToStatement	"within our mandate, the ECB is ready to do whatever it takes to preserve the euro" ⓘ
madeBy	European Central Bank ⓘ
maturityTarget	one to three-year maturities ⓘ
monetaryPolicyRegime	unconventional measures at the zero lower bound ⓘ
operationalForm	potential unlimited purchases subject to conditions ⓘ
policyType	secondary market bond purchase programme ⓘ
precededBy	European Central Bank announcement of Outright Monetary Transactions self-linksurface differs ⓘ surface form: Mario Draghi "whatever it takes" speech of 26 July 2012
replacedProgramme	Securities Markets Programme ⓘ
reviewedBy	Court of Justice of the European Union ⓘ
seniorityStatus	same treatment as private creditors ⓘ
shortName	OMT announcement ⓘ
sterilizationFeature	liquidity fully sterilized ⓘ
subjectTo	Governing Council discretion ⓘ
targetedCountries	distressed euro-area member states ⓘ
widelyCreditedWith	preventing a breakup of the euro area ⓘ stabilizing the Eurozone during the sovereign debt crisis ⓘ

Referenced by (3)

Full triples — surface form annotated when it differs from this entity's canonical label.

Eurozone crisis → keyEvent → European Central Bank announcement of Outright Monetary Transactions ⓘ

Mario Draghi → notableWork → European Central Bank announcement of Outright Monetary Transactions ⓘ

this entity surface form: Outright Monetary Transactions policy design

European Central Bank announcement of Outright Monetary Transactions → precededBy → European Central Bank announcement of Outright Monetary Transactions self-linksurface differs ⓘ

this entity surface form: Mario Draghi "whatever it takes" speech of 26 July 2012