This letter shows that the ‘Whatever it takes’ speech by ECB President Draghi on 26 July 2012 and the ensuing installation of the Outright Monetary Transactions’ framework are associated with a reduction in the domestic and cross-border effect of Eurozone news on absolute yield changes in Eurozone sovereign debt. These results are consistent with the popular view that these actions helped to avoid a collapse of the Eurozone.
CITATION STYLE
Van Der Heijden, M., Beetsma, R., & Romp, W. (2018). ‘Whatever it takes’ and the role of Eurozone news. Applied Economics Letters, 25(16), 1166–1169. https://doi.org/10.1080/13504851.2017.1403555
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