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subpages for Risk mitigation"></a><ul><li class="clearfix"><a href="/mopo/coll/risk/ecaf/html/index.en.html">ECAF</a></li><li class="clearfix"><a href="/mopo/coll/risk/riskcontrol/html/index.en.html">Risk control</a></li><li class="clearfix"><a href="/mopo/coll/risk/liquidity/html/index.en.html">Haircut categories</a></li><li class="clearfix"><a href="/mopo/coll/risk/valuation/html/index.en.html">Valuation</a></li></ul></li><li class="has-subpages"><a href="/mopo/coll/loanlevel/html/index.en.html">Loan-level requirements</a><a href="#" class="subpages" title="toggle subpages for Loan-level requirements"></a><ul><li class="clearfix"><a href="/mopo/coll/loanlevel/transmission/html/index.en.html">Data templates</a></li><li class="clearfix"><a href="/mopo/coll/loanlevel/implementation/html/index.en.html">Eligibility requirements</a></li><li class="clearfix"><a href="/mopo/coll/loanlevel/faq/html/index.en.html">Frequently asked questions</a></li></ul></li><li class="clearfix"><a href="/mopo/coll/contacts/html/index.en.html">Contacts</a></li></ul></li><li class="has-subpages"><a href="/mopo/eaec/html/index.en.html">Structure of the euro area economy</a><a href="#" class="subpages" title="toggle subpages for Structure of the euro area economy"></a><ul><li class="clearfix"><a href="/mopo/eaec/ecopolicy/html/index.en.html">Economic policy</a></li><li class="clearfix"><a href="/mopo/eaec/fiscal/html/index.en.html">Fiscal policies</a></li><li class="clearfix"><a href="/mopo/eaec/trade/html/index.en.html">External trade</a></li><li class="clearfix"><a href="/mopo/eaec/eer/html/index.en.html">Effective exchange rates</a></li><li class="clearfix"><a href="/mopo/eaec/structure/html/index.en.html">Financial structure</a></li><li class="clearfix"><a href="/mopo/eaec/markets/html/index.en.html">Financial markets</a></li><li class="clearfix"><a href="/mopo/eaec/intermediaries/html/index.en.html">Financial intermediaries</a></li><li class="clearfix"><a 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href="/mopo/market-contact-groups/iid/html/index.en.html">Institutional Investor Dialogue (IID)</a></li></ul></li></ul></div></li><li class="has-subpages" aria-expanded="false"><a href="/paym/html/index.en.html">Payments & financial stability</a><a href="#" class="subpages" title="toggle subpages for Payments & financial stability"></a><div class="nav-first-level-wrap"><div class="nav-featured-wrap"><div class="nav-featured"><div class="item"> <div class="title">Payments & financial stability</div> <p>Insights into our work on financial stability and payments infrastructure</p> <a href="/paym/html/index.en.html">Overview of payments and financial stability</a> <hr> <div class="nav-title">Quick links</div> <ul> <li><a href="/euro/digital_euro/html/index.en.html">Digital euro</a></li> <li><a href="/press/intro/html/index.en.html">Payments news</a></li> <li><a href="/paym/target/target-professional-use-documents-links/html/index.en.html">TARGET professional use documents and links</a></li> </ul> </div> <a href="/pub/financial-stability/fsr/html/index.en.html" class="item image"> <img src="/paym/financial-stability/html/index/fsr_1000x750.jpg" width="357" height="179" loading="lazy" style="object-fit:cover"> <div class="image-caption">Latest Financial Stability Review</div> <div class="image-date">16 May 2024</div> </a> </div></div><ul><li class="clearfix"><span>Payments</span></li><li class="has-subpages"><a href="/paym/target/html/index.en.html">TARGET Services</a><a href="#" class="subpages" title="toggle subpages for TARGET Services"></a><ul><li class="clearfix"><a href="/paym/target/coco/html/index.en.html">Shared features</a></li><li class="has-subpages"><a href="/paym/target/t2/html/index.en.html">T2</a><a href="#" class="subpages" title="toggle subpages for T2"></a><ul><li class="clearfix"><a href="/paym/target/t2/facts/html/index.en.html">Facts and figures</a></li><li class="clearfix"><a href="/paym/target/t2/governance/html/index.en.html">Governance</a></li></ul></li><li class="has-subpages"><a href="/paym/target/t2s/html/index.en.html">T2S</a><a href="#" class="subpages" title="toggle subpages for T2S"></a><ul><li class="clearfix"><a href="/paym/target/t2s/governance/html/index.en.html">Governance</a></li><li class="clearfix"><a href="/paym/target/t2s/facts/html/index.en.html">Facts and figures</a></li><li class="clearfix"><a href="/paym/target/t2s/pricing/html/index.en.html">Pricing</a></li></ul></li><li class="has-subpages"><a href="/paym/target/tips/html/index.en.html">TIPS</a><a href="#" class="subpages" title="toggle subpages for TIPS"></a><ul><li class="clearfix"><a href="/paym/target/tips/governance/html/index.en.html">Governance</a></li><li class="clearfix"><a href="/paym/target/tips/facts/html/index.en.html">Facts and figures</a></li><li class="clearfix"><a href="/paym/target/tips/onboarding/html/index.en.html">Onboarding</a></li></ul></li><li class="clearfix"><a href="/paym/target/ecms/html/index.en.html">ECMS</a></li><li class="has-subpages"><a href="/paym/target/target-professional-use-documents-links/html/index.en.html">TARGET professional use documents & links</a><a href="#" class="subpages" title="toggle subpages for TARGET professional use documents & links"></a><ul><li class="clearfix"><a href="/paym/target/target-professional-use-documents-links/coco/html/index.en.html">Shared features documents & links</a></li><li class="clearfix"><a href="/paym/target/target-professional-use-documents-links/t2/html/index.en.html">T2 documents & links</a></li><li class="clearfix"><a href="/paym/target/target-professional-use-documents-links/t2s/html/index.en.html">T2S documents & links</a></li><li class="clearfix"><a href="/paym/target/target-professional-use-documents-links/tips/html/index.en.html">TIPS documents & links</a></li><li class="clearfix"><a href="/paym/target/target-professional-use-documents-links/ecms/html/index.en.html">ECMS documents & links</a></li></ul></li></ul></li><li class="has-subpages"><a href="/paym/integration/html/index.en.html">Integration and innovation</a><a href="#" class="subpages" title="toggle subpages for Integration and innovation"></a><ul><li class="has-subpages"><a href="/paym/integration/distributed/html/index.en.html">Distributed ledger technologies</a><a href="#" class="subpages" title="toggle subpages for Distributed ledger technologies"></a><ul><li class="clearfix"><a href="/paym/integration/distributed/exploratory/html/index.en.html">Exploratory work</a></li></ul></li><li class="has-subpages"><a href="/paym/integration/retail/html/index.en.html">Retail payments</a><a href="#" class="subpages" title="toggle subpages for Retail payments"></a><ul><li class="clearfix"><a href="/paym/integration/retail/retail_payments_strategy/html/index.en.html">Retail payments strategy</a></li><li class="clearfix"><a href="/paym/integration/retail/ecb/html/index.en.html">ECB as a catalyst</a></li><li class="clearfix"><a href="/paym/integration/retail/sepa/html/index.en.html">SEPA</a></li><li class="clearfix"><a href="/paym/integration/retail/instant_payments/html/index.en.html">Instant payments</a></li></ul></li><li class="has-subpages"><a href="/paym/integration/collateral/html/index.en.html">Collateral management harmonisation</a><a href="#" class="subpages" title="toggle subpages for Collateral management harmonisation"></a><ul><li class="clearfix"><a href="/paym/integration/collateral/implementation/html/index.en.html">Implementation</a></li><li class="clearfix"><a href="/paym/integration/collateral/faq/html/index.en.html">FAQ</a></li></ul></li></ul></li><li class="has-subpages"><a href="/paym/cyber-resilience/html/index.en.html">Cyber resilience</a><a href="#" class="subpages" title="toggle subpages for Cyber resilience"></a><ul><li class="clearfix"><a href="/paym/cyber-resilience/fmi/html/index.en.html">Financial market infrastructures</a></li><li class="clearfix"><a href="/paym/cyber-resilience/tiber-eu/html/index.en.html">TIBER-EU</a></li></ul></li><li class="has-subpages"><a href="/paym/pol/html/index.en.html">Oversight</a><a href="#" class="subpages" title="toggle subpages for Oversight"></a><ul><li class="clearfix"><a href="/paym/pol/systems/html/index.en.html">Payment systems</a></li><li class="clearfix"><a href="/paym/pol/target2-securities/html/index.en.html">TARGET2-Securities</a></li><li class="clearfix"><a href="/paym/pol/instr/html/index.en.html">Electronic payments</a></li><li class="clearfix"><a href="/paym/pol/clearing/html/index.en.html">Securities settlement systems and central counterparties</a></li><li class="clearfix"><a href="/paym/pol/critical/html/index.en.html">Critical service providers</a></li><li class="clearfix"><a href="/paym/pol/correspondent-and-custodian-banks/html/index.en.html">Correspondent and custodian banks</a></li><li class="clearfix"><a href="/paym/pol/forum/html/index.en.html">SecuRe Pay forum</a></li></ul></li><li class="has-subpages"><a href="/paym/erms/html/index.en.html">Reserve management services</a><a href="#" class="subpages" title="toggle subpages for Reserve management services"></a><ul><li class="clearfix"><a href="/paym/erms/aspects/html/index.en.html">Key aspects</a></li><li class="clearfix"><a href="/paym/erms/service/html/index.en.html">Range of services</a></li></ul></li><li class="has-subpages"><a href="/paym/cashprof/html/index.en.html">Cash professionals</a><a href="#" class="subpages" title="toggle subpages for Cash professionals"></a><ul><li class="has-subpages"><a href="/paym/cashprof/cashhand/html/index.en.html">Cash handling</a><a href="#" class="subpages" title="toggle subpages for Cash handling"></a><ul><li class="clearfix"><a href="/paym/cashprof/cashhand/devices/html/index.en.html">Authentication devices</a></li><li class="clearfix"><a href="/paym/cashprof/cashhand/recycling/html/index.en.html">Recirculation of banknotes</a></li></ul></li><li class="clearfix"><a href="/paym/cashprof/cdispec/html/index.en.html">Common detector interface specifications</a></li><li class="clearfix"><a href="/paym/cashprof/accreditation/html/index.en.html">Banknote manufacturer accreditation</a></li></ul></li><li class="has-subpages"><a href="/paym/groups/html/index.en.html">Payment contact groups</a><a href="#" class="subpages" title="toggle subpages for Payment contact groups"></a><ul><li class="clearfix"><a href="/paym/groups/ami/html/index.en.html">Advisory groups on market infrastructures</a></li><li class="clearfix"><a href="/paym/groups/euro-cyber-board/html/index.en.html">Euro Cyber Resilience Board</a></li><li class="clearfix"><a href="/paym/groups/erpb/html/index.en.html">Euro Retail Payments Board (ERPB)</a></li><li class="clearfix"><a href="/paym/groups/efip/html/index.en.html">European Forum for Innovation in Payments (EFIP)</a></li></ul></li><li class="clearfix"><span>Financial stability</span></li><li class="clearfix"><a href="/paym/financial-stability/html/index.en.html">Introduction to financial stability</a></li><li class="clearfix"><a href="/paym/macroprudential-measures/html/index.en.html">Macroprudential Measures</a></li><li class="clearfix"><a href="/paym/financial_stability_contact_groups/html/index.en.html">Financial stability contact groups</a></li></ul></div></li><li class="has-subpages" aria-expanded="false"><a href="/stats/html/index.en.html">Statistics</a><a href="#" class="subpages" title="toggle subpages for Statistics"></a><div class="nav-first-level-wrap"><div class="nav-featured-wrap"><div class="nav-featured"><div class="item"> <div class="title">Statistics</div> <p>Access to all ECB statistics and background information</p> <a href="/stats/html/index.en.html">Overview of ECB statistics</a> <hr> <div class="nav-title">Quick links</div> <ul> <li><a href="https://data.ecb.europa.eu/main-figures">Main figures</a></li> <li><a href="https://data.ecb.europa.eu/">ECB Data Portal</a></li> <li><a href="/press/stats/html/index.en.html">Statistical releases</a></li> </ul> </div> <a href="/press/blog/date/2024/html/ecb.blog20240418~2240ea1850.en.html" class="item image"> <img src="/press/blog/date/2024/html//ecb.blog20240418~2240ea1850/ecb.blog20240418~2240ea1850.jpg" width="357" height="179" loading="lazy" style="object-fit:cover"> <div class="image-caption">THE ECB BLOG - Improved data: how climate change impacts banks</div> <div class="image-date">18 April 2024</div> </a> </div></div><ul><li class="clearfix"><span>Frequently accessed</span></li><li class="clearfix"><a href="/stats/euro-exchange-rates/html/index.en.html">Euro exchange rates</a></li><li class="clearfix"><a href="/stats/key-ecb-interest-rates/html/index.en.html">Key ECB interest rates</a></li><li class="has-subpages"><a href="/stats/euro-short-term-rates/html/index.en.html">Euro short-term rate (€STR)</a><a href="#" class="subpages" title="toggle subpages for Euro short-term rate (€STR)"></a><ul><li class="has-subpages"><a href="/stats/euro-short-term-rates/interest_rate_benchmarks/html/index.en.html">Interest rate benchmarks</a><a href="#" class="subpages" title="toggle subpages for Interest rate benchmarks"></a><ul><li class="clearfix"><a href="/stats/euro-short-term-rates/interest_rate_benchmarks/WG_euro_risk-free_rates/html/index.en.html">Working group on euro risk-free rates</a></li></ul></li></ul></li><li class="clearfix"><a href="/stats/inflation/html/index.en.html">Inflation</a></li><li class="clearfix"><a href="/stats/euro-area-yield-curves/html/index.en.html">Euro area yield curves</a></li><li class="clearfix"><span>All statistics & background</span></li><li class="clearfix"><a href="/stats/all-key-statistics/html/index.en.html">All key statistics</a></li><li class="clearfix"><a href="/stats/accessing-our-data/html/index.en.html">All data services</a></li><li class="has-subpages"><a href="/stats/ecb_statistics/html/index.en.html">Data reporting & standards</a><a href="#" class="subpages" title="toggle subpages for Data reporting & standards"></a><ul><li class="clearfix"><a href="/stats/ecb_statistics/governance_and_quality_framework/html/index.en.html">Governance and quality framework</a></li><li class="clearfix"><a href="/stats/ecb_statistics/co-operation_and_standards/html/index.en.html">Co-operation and standards</a></li><li class="clearfix"><a href="/stats/ecb_statistics/reporting/html/index.en.html">Banks’ data reporting</a></li><li class="has-subpages"><a href="/stats/ecb_statistics/anacredit/html/index.en.html">AnaCredit</a><a href="#" class="subpages" title="toggle subpages for AnaCredit"></a><ul><li class="clearfix"><a href="/stats/ecb_statistics/anacredit/questions/html/index.en.html">AnaCredit Q&A</a></li></ul></li><li class="clearfix"><a href="/stats/ecb_statistics/consultations/html/index.en.html">Public consultations</a></li><li class="clearfix"><a href="/stats/ecb_statistics/dialogue/html/index.en.html">Banking industry dialogue on ESCB statistics and integrated reporting</a></li><li class="clearfix"><a href="/stats/ecb_statistics/sdmx/html/index.en.html">SDMX – statistical data exchange model</a></li><li class="clearfix"><a href="/stats/ecb_statistics/inexda/html/index.en.html">INEXDA - granular data network</a></li></ul></li></ul></div></li><li class="has-subpages" aria-expanded="false"><a href="/euro/html/index.en.html">The euro</a><a href="#" class="subpages" title="toggle subpages for The euro"></a><div class="nav-first-level-wrap"><div class="nav-featured-wrap"><div class="nav-featured"><div class="item"> <div class="title">The euro</div> <p>All you need to know about our common currency</p> <a href="/euro/html/index.en.html">Overview of the euro</a> <hr> <div class="nav-title">Quick links</div> <ul> <li><a href="/paym/cashprof/html/index.en.html">Cash professionals</a></li> <li><a href="/stats/policy_and_exchange_rates/banknotes+coins/html/index.en.html">Banknote and coins statistics</a></li> <li><a href="/stats/policy_and_exchange_rates/euro_reference_exchange_rates/html/index.en.html">Euro exchange rates</a></li> </ul> </div> <a href="/euro/digital_euro/progress/html/index.en.html" class="item image"> <img src="/euro/digital_euro/shared/img/Digital Euro_Website_Homepage-Box-eurosign_1000x750.jpg" width="357" height="179" loading="lazy" style="object-fit:cover"> <div class="image-caption">First progress report on the preparation phase of a digital euro</div> <div class="image-date">24 June 2024</div> </a> </div></div><ul><li class="has-subpages"><a href="/euro/digital_euro/html/index.en.html">Digital euro</a><a href="#" class="subpages" title="toggle subpages for Digital euro"></a><ul><li class="has-subpages"><a href="/euro/digital_euro/features/html/index.en.html">What it is</a><a href="#" class="subpages" title="toggle subpages for What it is"></a><ul><li class="clearfix"><a href="/euro/digital_euro/features/privacy/html/index.en.html">Digital euro and privacy</a></li></ul></li><li class="clearfix"><a href="/euro/digital_euro/how-it-works/html/index.en.html">How it works</a></li><li class="clearfix"><a href="/euro/digital_euro/why-we-need-it/html/index.en.html">Why we need it</a></li><li class="clearfix"><a href="/euro/digital_euro/progress/html/index.en.html">Timeline and progress</a></li><li class="has-subpages"><a href="/euro/digital_euro/timeline/html/index.en.html">In-depth information</a><a href="#" class="subpages" title="toggle subpages for In-depth information"></a><ul><li class="clearfix"><a href="/euro/digital_euro/timeline/stakeholder/html/index.en.html">Governance and stakeholder engagement</a></li><li class="clearfix"><a href="/euro/digital_euro/timeline/profuse/html/index.en.html">Technical documents and research</a></li><li class="clearfix"><a href="/euro/digital_euro/timeline/rulebook/html/index.en.html">Scheme rulebook</a></li></ul></li><li class="clearfix"><a href="/euro/digital_euro/faqs/html/index.en.html">Frequently asked questions</a></li></ul></li><li class="clearfix"><span>Cash</span></li><li class="has-subpages"><a href="/euro/cash_strategy/html/index.en.html">The Eurosystem cash strategy</a><a href="#" class="subpages" title="toggle subpages for The Eurosystem cash strategy"></a><ul><li class="clearfix"><a href="/euro/cash_strategy/cash_role/html/index.en.html">The role of cash</a></li><li class="clearfix"><a href="/euro/cash_strategy/issuance/html/index.en.html">Issuance and circulation</a></li><li class="clearfix"><a href="/euro/cash_strategy/acceptance-cash/html/index.en.html">Access to and acceptance of cash</a></li><li class="clearfix"><a href="/euro/cash_strategy/faqs/html/index.en.html">Frequently asked questions</a></li></ul></li><li class="has-subpages"><a href="/euro/banknotes/html/index.en.html">Banknotes</a><a href="#" class="subpages" title="toggle subpages for Banknotes"></a><ul><li class="has-subpages"><a href="/euro/banknotes/future_banknotes/html/index.en.html">Future banknotes</a><a href="#" class="subpages" title="toggle subpages for Future banknotes"></a><ul><li class="clearfix"><a href="/euro/banknotes/future_banknotes/redesign/html/index.en.html">Redesign process</a></li></ul></li><li class="has-subpages"><a href="/euro/banknotes/current/html/index.en.html">Current banknotes</a><a href="#" class="subpages" title="toggle subpages for Current banknotes"></a><ul><li class="clearfix"><a href="/euro/banknotes/current/denominations/html/index.en.html">Denominations</a></li><li class="clearfix"><a href="/euro/banknotes/current/design/html/index.en.html">Design elements</a></li><li class="clearfix"><a href="/euro/banknotes/current/security/html/index.en.html">Security features</a></li></ul></li><li class="clearfix"><a 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data-image-webp="/pub/shared/img/header.webp" data-image="/pub/shared/img/header.jpg"> <div data-image="/pub/shared/img/header.jpg" data-image-webp="/pub/shared/img/header.webp" ></div> </div> <aside aria-label="Social media sharing and related content (if available)"> <div id="ecb-social-sharing" class="" tab-index="2"> <ul class="-links"> <li class="-print"><a href="javascript:window.print()" title="Print page"></a></li> </ul> <div class="-separator"></div> <ul class="-links"> <li class="-twitter"><a href="javascript:window.open('https://twitter.com/intent/tweet?url='+location.protocol + '//' + location.host + location.pathname+((document.location.search.search(/\?youtubeID=[a-zA-Z0-9_-]+$/)!=-1&&document.location.search)||''),'_blank','width=600,height=400,menubar=no')" title="Share on X"></a></li> <li class="-facebook"><a href="javascript:window.open('https://www.facebook.com/sharer/sharer.php?u='+location.protocol + '//' + location.host + 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class="profile-box -top-arrow -portrait-img"><div class='upper'> <div data-image='/pub/research/authors/profiles/profile_pics/author_picture_daniel-kapp.jpg'></div> <div class='content-box'> <h4>International & European Relations</h4> <dl><dt>Division</dt><dd><p>EU Institutions & Fora</p></dd> <dt>Current Position</dt> <dd> <p>Deputy Head of Division</p> </dd><dt>Fields of interest</dt> <dd> <p>Macroeconomics and Monetary Economics,Financial Economics,International Economics</p> </dd><dt>Email</dt> <dd> <p><a href='mailto:daniel.kapp@ecb.europa.eu'>daniel.kapp@ecb.europa.eu</a></p> </dd> </dl> </div> </div><div class='lower'><div class='tabs-container -white-blue'><input id='t1' name='author-tab-group' type='radio' checked> <label for='t1'><span class='arrow'></span>Biography</label> <div class='tab-content'> <dl> </dl> </div><input id='t2' name='author-tab-group' type='radio'> <label for='t2'><span class='arrow'></span>ECB publications</label> <div class='tab-content'><div class="definition-list "><dl><dt isoDate="2024-01-31"><div class="date">31 January 2024</div></dt><dd><div class="category">WORKING PAPER SERIES - No. 2899</div><div class="title"><a href="/pub/pdf/scpwps/ecb.wp2899~4710d4cecd.en.pdf?ceb47d4721da0c86982310ce76273bd2" >Physical and transition risk premiums in euro area corporate bond markets</a></div><div class="authors"><ul><li><a href="/pub/research/authors/profiles/joost-victor-bats.en.html" >Joost Victor Bats</a></li><li><a href="/pub/research/authors/profiles/giovanna-bua.en.html" >Giovanna Bua</a></li><li><a href="/pub/research/authors/profiles/daniel-kapp.en.html" >Daniel Kapp</a></li></ul></div><div class="ecb-langSelector"><span class="offeredLanguage"><a class='pdf' lang="en" href="/pub/pdf/scpwps/ecb.wp2899~4710d4cecd.en.pdf"> <span class="ecb-full">English</span></a></span></div><div class='accordion'><div class="header"><div class="title">Details</div></div><div class="content-box"><dl><dt>Abstract</dt><dd>The European Union plays a prominent role in climate regulations initiatives, this commitment likely implies that climate risk premiums look different in Europe compared to the rest of the world. This paper examines the pricing implications of climate risks in euro area corporate bond markets, focusing on physical and transition risk. Using climate news as a gauge for systematic climate risk, we find a significant pricing effect of physical risk in long-term bonds, with investors demanding higher returns on bonds exposed to physical risk shocks. The estimated physical risk premium is 34 basis points, indicating increased awareness and hedging demand after the Paris Agreement. Transition risk premiums are smaller and less significant, reflecting the ongoing transition to a low-carbon economy. Our findings contribute to understanding climate risk pricing in the European bond markets, highlighting the importance of physical risk and the evolving nature of investor demand for climate-resilient assets.</dd><dt>JEL Code</dt><dd><strong>G12</strong> : Financial Economics→General Financial Markets→Asset Pricing, Trading Volume, Bond Interest Rates<br/><strong>G14</strong> : Financial Economics→General Financial Markets→Information and Market Efficiency, Event Studies, Insider Trading<br/><strong>G28</strong> : Financial Economics→Financial Institutions and Services→Government Policy and Regulation<br/><strong>Q51</strong> : Agricultural and Natural Resource Economics, Environmental and Ecological Economics→Environmental Economics→Valuation of Environmental Effects<br/><strong>Q54</strong> : Agricultural and Natural Resource Economics, Environmental and Ecological Economics→Environmental Economics→Climate, Natural Disasters, Global Warming<br/></dd></dl></div></div></dd><dt isoDate="2023-08-09"><div class="date">9 August 2023</div></dt><dd><div class="category">THE ECB BLOG</div><div class="title"><a href="/press/blog/date/2023/html/ecb.blog230809~f101598a82.en.html" >How words guide markets: measuring monetary policy communication </a></div><div class="authors"><ul><li><a href="/pub/research/authors/profiles/jean-francois-bouscasse.en.html" >Jean-François Bouscasse</a></li><li><a href="/pub/research/authors/profiles/daniel-kapp.en.html" >Daniel Kapp</a></li><li><a href="/pub/research/authors/profiles/thomas-mcgregor.en.html" >Thomas McGregor</a></li><li><a href="/pub/research/authors/profiles/julian-schumacher.en.html" >Julian Schumacher</a></li></ul></div><div class="ecb-langSelector"><span class="offeredLanguage"><a class='arrow' lang="en" href="/press/blog/date/2023/html/ecb.blog230809~f101598a82.en.html"> <span class="ecb-full">English</span></a></span></div><div class='accordion'><div class="header"><div class="title">Details</div></div><div class="content-box"><dl><dt>JEL Code</dt><dd><strong>E52</strong> : Macroeconomics and Monetary Economics→Monetary Policy, Central Banking, and the Supply of Money and Credit→Monetary Policy<br/><strong>E58</strong> : Macroeconomics and Monetary Economics→Monetary Policy, Central Banking, and the Supply of Money and Credit→Central Banks and Their Policies<br/><strong>D53</strong> : Microeconomics→General Equilibrium and Disequilibrium→Financial Markets<br/></dd></dl></div></div></dd><dt isoDate="2022-07-04"><div class="date">4 July 2022</div></dt><dd><div class="category">WORKING PAPER SERIES - No. 2677</div><div class="title"><a href="/pub/pdf/scpwps/ecb.wp2677~9fc49e8300.en.pdf?4a7ee7bcf414c06ebb92b48011c953a5" >Transition versus physical climate risk pricing in European financial markets: a text-based approach</a></div><div class="authors"><ul><li><a href="/pub/research/authors/profiles/giovanna-bua.en.html" >Giovanna Bua</a></li><li><a href="/pub/research/authors/profiles/daniel-kapp.en.html" >Daniel Kapp</a></li><li><a href="/pub/research/authors/profiles/federico-ramella.en.html" >Federico Ramella</a></li><li><a href="/pub/research/authors/profiles/lavinia-rognone.en.html" >Lavinia Rognone</a></li></ul></div><div class="ecb-langSelector"><span class="offeredLanguage"><a class='pdf' lang="en" href="/pub/pdf/scpwps/ecb.wp2677~9fc49e8300.en.pdf"> <span class="ecb-full">English</span></a></span></div><div class='accordion'><div class="header"><div class="title">Details</div></div><div class="content-box"><dl><dt>Abstract</dt><dd>We examine the existence of physical and transition climate risk premia in euro areaequity markets. To do so, we develop two novel physical and transition risk indicators, basedon text analysis, which are then used to gauge the presence of climate risk premia. Resultssuggest that climate risk premia for both, transition and physical climate risk, have increasedsince the time of the Paris Agreement. In addition, we investigate which metrics may be usedby investors to proxy a firm’s exposure to either physical or transition risk. To this end, weconstruct portfolios according to the most common firm-specific climate metrics and estimatethe sensitivity of these portfolios to our risk indicators. We compare results from these firmlevelproxies to much simpler sectoral classifications to see if investors may simply pigeonholefirms into the industry they operate in. We find that firm level information appears to beused as a gauge for transition risk, in particular since 2015, whereas sectoral classificationsappear insufficient. However, sectoral classification may be employed to broadly gauge firms’exposures to physical risk.</dd><dt>JEL Code</dt><dd><strong>C58</strong> : Mathematical and Quantitative Methods→Econometric Modeling→Financial Econometrics<br/><strong>G12</strong> : Financial Economics→General Financial Markets→Asset Pricing, Trading Volume, Bond Interest Rates<br/><strong>G14</strong> : Financial Economics→General Financial Markets→Information and Market Efficiency, Event Studies, Insider Trading<br/><strong>G28</strong> : Financial Economics→Financial Institutions and Services→Government Policy and Regulation<br/><strong>Q51</strong> : Agricultural and Natural Resource Economics, Environmental and Ecological Economics→Environmental Economics→Valuation of Environmental Effects<br/></dd></dl></div></div></dd><dt isoDate="2022-05-19"><div class="date">19 May 2022</div></dt><dd><div class="category">WORKING PAPER SERIES - No. 2664</div><div class="title"><a href="/pub/pdf/scpwps/ecb.wp2664~f33fae7469.en.pdf?cd4c260ad37bfafe44bdfaf732eef541" >The rise in the cross-sectoral dispersion of earnings expectations during COVID-19</a></div><div class="authors"><ul><li><a href="/pub/research/authors/profiles/joost-bats.en.html" >Joost Bats</a></li><li><a href="/pub/research/authors/profiles/william-greif.en.html" >William Greif</a></li><li><a href="/pub/research/authors/profiles/daniel-kapp.en.html" >Daniel Kapp</a></li></ul></div><div class="ecb-langSelector"><span class="offeredLanguage"><a class='pdf' lang="en" href="/pub/pdf/scpwps/ecb.wp2664~f33fae7469.en.pdf"> <span class="ecb-full">English</span></a></span></div><div class='accordion'><div class="header"><div class="title">Details</div></div><div class="content-box"><dl><dt>Abstract</dt><dd>This paper documents a durable increase in the cross-sectoral dispersion of earnings expectations during the COVID-19 crisis. The rise in dispersion of earnings forecasts can be explained by the introduction of lockdown measures, which had a particularly adverse impact on the travel sector. Accordingly, in terms of earnings expectations, countries that are relatively independent of the travel sector were least affected by a tightening of lockdowns. At the same time, vaccinations have been a game changer: more stringent lockdown measures added far less to the cross-sectoral dispersion in earnings expectations once vaccines started to be rolled out in late 2020. Going forward, the dispersion in earnings expectations continues to stand at elevated levels.</dd><dt>JEL Code</dt><dd><strong>E44</strong> : Macroeconomics and Monetary Economics→Money and Interest Rates→Financial Markets and the Macroeconomy<br/><strong>G10</strong> : Financial Economics→General Financial Markets→General<br/><strong>G12</strong> : Financial Economics→General Financial Markets→Asset Pricing, Trading Volume, Bond Interest Rates<br/></dd></dl></div></div></dd><dt isoDate="2022-04-26"><div class="date">26 April 2022</div></dt><dd><div class="category">ECONOMIC BULLETIN - BOX</div><div class="title"><a href="/press/economic-bulletin/focus/2022/html/ecb.ebbox202203_06~ca1e9ea13e.en.html" >The role of speculation during the recent increase in EU emissions allowance prices</a></div><div class="authors"><ul><li><a href="/pub/research/authors/profiles/miguel-ampudia.en.html" >Miguel Ampudia</a></li><li><a href="/pub/research/authors/profiles/giovanna-bua.en.html" >Giovanna Bua</a></li><li><a href="/pub/research/authors/profiles/daniel-kapp.en.html" >Daniel Kapp</a></li><li><a href="/pub/research/authors/profiles/dilyara-salakhova.en.html" >Dilyara Salakhova</a></li></ul></div><div class="main-publication">Economic Bulletin Issue 3, 2022</div><div class="ecb-langSelector"><span class="offeredLanguage"><a class='arrow' lang="en" href="/press/economic-bulletin/focus/2022/html/ecb.ebbox202203_06~ca1e9ea13e.en.html"> <span class="ecb-full">English</span></a></span></div><div class='accordion'><div class="header"><div class="title">Details</div></div><div class="content-box"><dl><dt>Abstract</dt><dd>The price of emissions allowances traded on the EU Emissions Trading System (ETS) has risen from below €10 per metric tonne of carbon to above €90 since the beginning of 2018. This box outlines the main reasons behind this increase and examines whether speculative activity may have played a significant role. It concludes that, at present, tangible evidence for a marked increase in speculative activity related to potential changes in market structure appears scarce. Furthermore, a speculation index suggests that, while speculation appears to have increased slightly since early 2019, it remains relatively moderate and well below readings during earlier phases of the ETS.</dd><dt>JEL Code</dt><dd><strong>G12</strong> : Financial Economics→General Financial Markets→Asset Pricing, Trading Volume, Bond Interest Rates<br/><strong>G14</strong> : Financial Economics→General Financial Markets→Information and Market Efficiency, Event Studies, Insider Trading<br/><strong>G38</strong> : Financial Economics→Corporate Finance and Governance→Government Policy and Regulation<br/></dd></dl></div></div></dd><dt isoDate="2021-09-23"><div class="date">23 September 2021</div></dt><dd><div class="category">ECONOMIC BULLETIN - BOX</div><div class="title"><a href="/press/economic-bulletin/focus/2021/html/ecb.ebbox202106_05~ef8ce0bc70.en.html" >EU emissions allowance prices in the context of the ECB’s climate change action plan</a></div><div class="authors"><ul><li><a href="/pub/research/authors/profiles/giovanna-bua.en.html" >Giovanna Bua</a></li><li><a href="/pub/research/authors/profiles/daniel-kapp.en.html" >Daniel Kapp</a></li><li><a href="/pub/research/authors/profiles/friderike-kuik.en.html" >Friderike Kuik</a></li><li><a href="/pub/research/authors/profiles/eliza-lis.en.html" >Eliza Lis</a></li></ul></div><div class="main-publication">Economic Bulletin Issue 6, 2021</div><div class="ecb-langSelector"><span class="offeredLanguage"><a class='arrow' lang="en" href="/press/economic-bulletin/focus/2021/html/ecb.ebbox202106_05~ef8ce0bc70.en.html"> <span class="ecb-full">English</span></a></span></div><div class='accordion'><div class="header"><div class="title">Details</div></div><div class="content-box"><dl><dt>Abstract</dt><dd>In its climate change action plan, the ECB committed to accelerating the development of new models and conducting theoretical and empirical analyses to monitor the implications of climate change and related policies for the economy. As a first step in its detailed roadmap of climate-related actions, the ECB envisages the inclusion of technical assumptions on carbon pricing in Eurosystem/ECB staff projections. Against this backdrop, this box summarises the genesis and basic features of the EU emissions trading system (ETS), the system setting the carbon price in the EU. The EU ETS, which began operating in 2005, is a “cap and trade” system where a cap is set by the EU on the total amount of greenhouse gases that can be emitted by the activities covered by the system. It has been implemented in “phases” designed to gradually reduce the cap while increasing the scope of the system. In July 2021 a revision of the EU ETS was proposed in the context of the “Fit for 55” package. Meanwhile, the price of emissions allowances traded on the EU ETS has increased from €8 per tonne of carbon dioxide equivalent at the beginning of 2018 to around €60 more recently. So far, the main impact of changes in emissions allowance prices has been on HICP energy inflation, and, overall, the risk that emissions allowance prices under the current EU ETS may translate into significantly higher headline inflation in the near term appears limited. However, against the backdrop of the ECB’s recently announced action plan, these and other climate change mitigation polices will be further explored with regard to their implications for macroeconomic modelling and monetary policy.</dd><dt>JEL Code</dt><dd><strong>E31</strong> : Macroeconomics and Monetary Economics→Prices, Business Fluctuations, and Cycles→Price Level, Inflation, Deflation<br/><strong>Q43</strong> : Agricultural and Natural Resource Economics, Environmental and Ecological Economics→Energy→Energy and the Macroeconomy<br/><strong>Q54</strong> : Agricultural and Natural Resource Economics, Environmental and Ecological Economics→Environmental Economics→Climate, Natural Disasters, Global Warming<br/></dd></dl></div></div></dd><dt isoDate="2021-09-21"><div class="date">21 September 2021</div></dt><dd><div class="category">OCCASIONAL PAPER SERIES - No. 271</div><div class="title"><a href="/pub/pdf/scpops/ecb.op271~36775d43c8.en.pdf?c29941b5e2dbeb3168b6e48f362a2b87" >Climate change and monetary policy in the euro area</a></div><div class="authors"><div class='accordion'><div class="header"><div class="title">Work stream on climate change</div></div><div class="content-box"><ul><li><a href="/pub/research/authors/profiles/francesco-drudi.en.html" >Francesco Drudi</a></li><li><a href="/pub/research/authors/profiles/emanuel-moench.en.html" >Emanuel Moench</a></li><li><a href="/pub/research/authors/profiles/cornelia-holthausen.en.html" >Cornelia Holthausen</a></li><li><a href="/pub/research/authors/profiles/pierre-francois-weber.en.html" >Pierre-François Weber</a></li><li><a href="/pub/research/authors/profiles/gianluigi-ferrucci.en.html" >Gianluigi Ferrucci</a></li><li><a href="/pub/research/authors/profiles/ralph-setzer.en.html" >Ralph Setzer</a></li><li><a href="/pub/research/authors/profiles/bernardino-adao.en.html" >Bernardino Adao</a></li><li><a href="/pub/research/authors/profiles/stephane-dees.en.html" >Stéphane Dées</a></li><li><a href="/pub/research/authors/profiles/spyros-alogoskoufis.en.html" >Spyros Alogoskoufis</a></li><li><a href="/pub/research/authors/profiles/mar-delgado-tellez.en.html" >Mar Delgado Téllez</a></li><li><a href="/pub/research/authors/profiles/malin-andersson.en.html" >Malin Andersson</a></li><li><a href="/pub/research/authors/profiles/virginia-di-nino.en.html" >Virginia Di Nino</a></li><li><a href="/pub/research/authors/profiles/jana-aubrechtova.en.html" >Jana Aubrechtova</a></li><li><a href="/pub/research/authors/profiles/arturo-diez-caballero.en.html" >Arturo Diez-Caballero</a></li><li><a href="/pub/research/authors/profiles/aris-avgousti.en.html" >Aris Avgousti</a></li><li><a href="/pub/research/authors/profiles/claudia-duarte.en.html" >Claudia Duarte</a></li><li><a href="/pub/research/authors/profiles/francesca-barbiero.en.html" >Francesca Barbiero</a></li><li><a href="/pub/research/authors/profiles/angel-estrada.en.html" >Ángel Estrada</a></li><li><a href="/pub/research/authors/profiles/lena-boneva.en.html" >Lena Boneva</a></li><li><a href="/pub/research/authors/profiles/donata-faccia.en.html" >Donata Faccia</a></li><li><a href="/pub/research/authors/profiles/andreas-breitenfellner.en.html" >Andreas Breitenfellner</a></li><li><a href="/pub/research/authors/profiles/ivan-faiella.en.html" >Ivan Faiella</a></li><li><a href="/pub/research/authors/profiles/giovanna-bua.en.html" >Giovanna Bua</a></li><li><a href="/pub/research/authors/profiles/matyas-farkas.en.html" >Mátyás Farkas</a></li><li><a href="/pub/research/authors/profiles/maurice-bun.en.html" >Maurice Bun</a></li><li><a href="/pub/research/authors/profiles/alessandro-ferrari.en.html" >Alessandro Ferrari</a></li><li><a href="/pub/research/authors/profiles/francesco-caprioli.en.html" >Francesco Caprioli</a></li><li><a href="/pub/research/authors/profiles/fabio-fornari.en.html" >Fabio Fornari</a></li><li><a href="/pub/research/authors/profiles/matteo-ciccarelli.en.html" >Matteo Ciccarelli</a></li><li><a href="/pub/research/authors/profiles/alberto-fuertes-mendoza.en.html" >Alberto Fuertes Mendoza</a></li><li><a href="/pub/research/authors/profiles/matthieu-darracq-paries.en.html" >Matthieu Darracq Pariès</a></li><li><a href="/pub/research/authors/profiles/pablo-garcia-sanchez.en.html" >Pablo Garcia-Sanchez</a></li><li><a href="/pub/research/authors/profiles/alessandro-giovannini.en.html" >Alessandro Giovannini</a></li><li><a href="/pub/research/authors/profiles/niki-papadopoulou.en.html" >Niki Papadopoulou</a></li><li><a href="/pub/research/authors/profiles/patrick-gruening.en.html" >Patrick Grüning</a></li><li><a href="/pub/research/authors/profiles/miles-parker.en.html" >Miles Parker</a></li><li><a href="/pub/research/authors/profiles/paolo-guarda.en.html" >Paolo Guarda</a></li><li><a href="/pub/research/authors/profiles/filippos-petroulakis.en.html" >Filippos Petroulakis</a></li><li><a href="/pub/research/authors/profiles/gerbert-hebbink.en.html" >Gerbert Hebbink</a></li><li><a href="/pub/research/authors/profiles/anamaria-piloiu.en.html" >Anamaria Piloiu</a></li><li><a href="/pub/research/authors/profiles/sarah-jane-hlaskova-murphy.en.html" >Sarah Jane Hlásková Murphy</a></li><li><a href="/pub/research/authors/profiles/gasper-ploj.en.html" >Gasper Ploj</a></li><li><a href="/pub/research/authors/profiles/michael-ioannidis.en.html" >Michael Ioannidis</a></li><li><a href="/pub/research/authors/profiles/wolfgang-pointner.en.html" >Wolfgang Pointner</a></li><li><a href="/pub/research/authors/profiles/lorenzo-isgro.en.html" >Lorenzo Isgro</a></li><li><a href="/pub/research/authors/profiles/alexander-popov.en.html" >Alexander Popov</a></li><li><a href="/pub/research/authors/profiles/daniel-kapp.en.html" >Daniel Kapp</a></li><li><a href="/pub/research/authors/profiles/doris-prammer.en.html" >Doris Prammer</a></li><li><a href="/pub/research/authors/profiles/melissa-kasongo-kashama.en.html" >Mélissa Kasongo Kashama</a></li><li><a href="/pub/research/authors/profiles/ricardo-queiroz.en.html" >Ricardo Queiroz</a></li><li><a href="/pub/research/authors/profiles/paloma-lopez-garcia.en.html" >Paloma Lopez-Garcia</a></li><li><a href="/pub/research/authors/profiles/omar-rachedi.en.html" >Omar Rachedi</a></li><li><a href="/pub/research/authors/profiles/matija-lozej.en.html" >Matija Lozej</a></li><li><a href="/pub/research/authors/profiles/lavinia-rognone.en.html" >Lavinia Rognone</a></li><li><a href="/pub/research/authors/profiles/reamonn-lydon.en.html" >Reamonn Lydon</a></li><li><a href="/pub/research/authors/profiles/oke-roehe.en.html" >Oke Röhe</a></li><li><a href="/pub/research/authors/profiles/otso-manninen.en.html" >Otso Manninen</a></li><li><a href="/pub/research/authors/profiles/madelaine-roos.en.html" >Madelaine Roos</a></li><li><a href="/pub/research/authors/profiles/andres-manzanares.en.html" >Andrés Manzanares</a></li><li><a href="/pub/research/authors/profiles/simone-russo.en.html" >Simone Russo</a></li><li><a href="/pub/research/authors/profiles/niall-mcinerney.en.html" >Niall McInerney</a></li><li><a href="/pub/research/authors/profiles/daniel-santabarbara.en.html" >Daniel Santabárbara</a></li><li><a href="/pub/research/authors/profiles/christoph-meinerding.en.html" >Christoph Meinerding</a></li><li><a href="/pub/research/authors/profiles/guido-schotten.en.html" >Guido Schotten</a></li><li><a href="/pub/research/authors/profiles/katri-mikkonen.en.html" >Katri Mikkonen</a></li><li><a href="/pub/research/authors/profiles/beatriz-sotomayor.en.html" >Beatriz Sotomayor</a></li><li><a href="/pub/research/authors/profiles/alessandro-mistretta.en.html" >Alessandro Mistretta</a></li><li><a href="/pub/research/authors/profiles/livio-stracca.en.html" >Livio Stracca</a></li><li><a href="/pub/research/authors/profiles/francesco-paolo-mongelli.en.html" >Francesco Paolo Mongelli</a></li><li><a href="/pub/research/authors/profiles/fabio-tamburrini.en.html" >Fabio Tamburrini</a></li><li><a href="/pub/research/authors/profiles/carlos-montes-galdon.en.html" >Carlos Montes-Galdón</a></li><li><a href="/pub/research/authors/profiles/anastasia-theofilakou.en.html" >Anastasia Theofilakou</a></li><li><a href="/pub/research/authors/profiles/georg-mueller.en.html" >Georg Müller</a></li><li><a href="/pub/research/authors/profiles/pinelopi-tsalaporta.en.html" >Pinelopi Tsalaporta</a></li><li><a href="/pub/research/authors/profiles/carolin-nerlich.en.html" >Carolin Nerlich</a></li><li><a href="/pub/research/authors/profiles/jan-willem-van-den-end.en.html" >Jan Willem van den End</a></li><li><a href="/pub/research/authors/profiles/malgorzata-osiewicz.en.html" >Malgorzata Osiewicz</a></li><li><a href="/pub/research/authors/profiles/lia-vaz-cruz.en.html" >Lia Vaz Cruz</a></li><li><a href="/pub/research/authors/profiles/boris-osorno-torres.en.html" >Boris Osorno-Torres</a></li><li><a href="/pub/research/authors/profiles/mark-andreas-weth.en.html" >Mark Andreas Weth</a></li><li><a href="/pub/research/authors/profiles/jean-francois-ouvrard.en.html" >Jean-François Ouvrard</a></li><li><a href="/pub/research/authors/profiles/gonzalo-yebes-gomez.en.html" >Gonzalo Yebes Gomez</a></li><li><a href="/pub/research/authors/profiles/adrian-page.en.html" >Adrian Page</a></li></ul></div></div></div><div class="ecb-langSelector"><span class="offeredLanguage"><a class='pdf' lang="en" href="/pub/pdf/scpops/ecb.op271~36775d43c8.en.pdf"> <span class="ecb-full">English</span></a></span></div><div class='accordion'><div class="header"><div class="title">Details</div></div><div class="content-box"><dl><dt>Abstract</dt><dd>This paper analyses the implications of climate change for the conduct of monetary policy in the euro area. It first investigates macroeconomic and financial risks stemming from climate change and from policies aimed at climate mitigation and adaptation, as well as the regulatory and fiscal effects of reducing carbon emissions. In this context, it assesses the need to adapt macroeconomic models and the Eurosystem/ECB staff economic projections underlying the monetary policy decisions. It further considers the implications of climate change for the conduct of monetary policy, in particular the implications for the transmission of monetary policy, the natural rate of interest and the correct identification of shocks. Model simulations using the ECB’s New Area-Wide Model (NAWM) illustrate how the interactions of climate change, financial and fiscal fragilities could significantly restrict the ability of monetary policy to respond to standard business cycle fluctuations. The paper concludes with an analysis of a set of potential monetary policy measures to address climate risks, insofar as they are in line with the ECB’s mandate.</dd><dt>JEL Code</dt><dd><strong>E52</strong> : Macroeconomics and Monetary Economics→Monetary Policy, Central Banking, and the Supply of Money and Credit→Monetary Policy<br/><strong>E58</strong> : Macroeconomics and Monetary Economics→Monetary Policy, Central Banking, and the Supply of Money and Credit→Central Banks and Their Policies<br/><strong>Q54</strong> : Agricultural and Natural Resource Economics, Environmental and Ecological Economics→Environmental Economics→Climate, Natural Disasters, Global Warming<br/></dd></dl></div></div></dd><dt isoDate="2021-08-05"><div class="date">5 August 2021</div></dt><dd><div class="category">ECONOMIC BULLETIN - BOX</div><div class="title"><a href="/press/economic-bulletin/focus/2021/html/ecb.ebbox202105_02~750306452f.en.html" >Cross-sectoral dispersion in firms’ earnings expectations during the COVID-19 crisis</a></div><div class="authors"><ul><li><a href="/pub/research/authors/profiles/joost-bats.en.html" >Joost Bats</a></li><li><a href="/pub/research/authors/profiles/william-greif.en.html" >William Greif</a></li><li><a href="/pub/research/authors/profiles/daniel-kapp.en.html" >Daniel Kapp</a></li></ul></div><div class="main-publication">Economic Bulletin Issue 5, 2021</div><div class="ecb-langSelector"><span class="offeredLanguage"><a class='arrow' lang="en" href="/press/economic-bulletin/focus/2021/html/ecb.ebbox202105_02~750306452f.en.html"> <span class="ecb-full">English</span></a></span></div><div class='accordion'><div class="header"><div class="title">Details</div></div><div class="content-box"><dl><dt>Abstract</dt><dd>More than a year after the onset of the COVID-19 crisis, euro area stock prices have risen close to all-time highs, mainly driven by a recovery in earnings expectations. However, COVID-19 and the associated lockdowns have left a larger and longer-lasting mark on some companies than on others. Indeed, earnings expectations have become more heterogeneous across sectors, in line with expectations of an uneven recovery. This stands in sharp contrast with the developments during the Global Financial Crisis, when cross-sectoral dispersion first dropped and then normalised.Empirical analysis suggests that cross-sectoral dispersion in 12-month earnings per share forecasts has increased with each tightening of lockdown measures. At the same time, the start of vaccination campaigns has been a game changer: since the vaccine rollout began in late 2020, more stringent lockdown measures have added far less to the dispersion in earnings expectations.</dd><dt>JEL Code</dt><dd><strong>E44</strong> : Macroeconomics and Monetary Economics→Money and Interest Rates→Financial Markets and the Macroeconomy<br/><strong>G10</strong> : Financial Economics→General Financial Markets→General<br/><strong>G12</strong> : Financial Economics→General Financial Markets→Asset Pricing, Trading Volume, Bond Interest Rates<br/></dd></dl></div></div></dd><dt isoDate="2021-04-12"><div class="date">12 April 2021</div></dt><dd><div class="category">WORKING PAPER SERIES - No. 2535</div><div class="title"><a href="/pub/pdf/scpwps/ecb.wp2535~a236a0a5fe.en.pdf?5b7ae3ca76be1cd1f97e8f6fcd134bc7" >Euro area equity risk premia and monetary policy: a longer-term perspective</a></div><div class="authors"><ul><li><a href="/pub/research/authors/profiles/daniel-kapp.en.html" >Daniel Kapp</a></li><li><a href="/pub/research/authors/profiles/kristian-kristiansen.en.html" >Kristian Kristiansen</a></li></ul></div><div class="ecb-langSelector"><span class="offeredLanguage"><a class='pdf' lang="en" href="/pub/pdf/scpwps/ecb.wp2535~a236a0a5fe.en.pdf"> <span class="ecb-full">English</span></a></span></div><div class='accordion'><div class="header"><div class="title">Details</div></div><div class="content-box"><dl><dt>Abstract</dt><dd>This study analyses the effects of euro area monetary policy on equity risk premia (ERP). We find that changes in equity prices during periods of accommodative monetary policy mainly reflected adjustments in the discount factor and economic activity – rather than fluctuations in investors’ required risk compensation. Furthermore, the ERP appears to not have declined much since the introduction of unconventional monetary policy and stands higher than prior to the GFC. Use of identified monetary policy shocks points to insignificant effects of monetary policy on the ERP. Further breakdown of these shocks reveals that monetary policy has a significant upwards impact on the ERP if it is perceived as a negative information surprise, while the opposite prevails in the case of a genuine accommodative monetary policy surprise. Accumulating these effects over time suggests that the two might have largely offset each other since the introduction of unconventional monetary policy.</dd><dt>JEL Code</dt><dd><strong>E22</strong> : Macroeconomics and Monetary Economics→Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy→Capital, Investment, Capacity<br/><strong>E52</strong> : Macroeconomics and Monetary Economics→Monetary Policy, Central Banking, and the Supply of Money and Credit→Monetary Policy<br/><strong>G12</strong> : Financial Economics→General Financial Markets→Asset Pricing, Trading Volume, Bond Interest Rates<br/></dd></dl></div></div></dd><dt isoDate="2020-07-28"><div class="date">28 July 2020</div></dt><dd><div class="category">ECONOMIC BULLETIN - BOX</div><div class="title"><a href="/press/economic-bulletin/focus/2020/html/ecb.ebbox202005_04~1b3e9fcb8f.en.html" >Euro area equity markets and shifting expectations for an economic recovery</a></div><div class="authors"><ul><li><a href="/pub/research/authors/profiles/miguel-ampudia.en.html" >Miguel Ampudia</a></li><li><a href="/pub/research/authors/profiles/daniel-kapp.en.html" >Daniel Kapp</a></li><li><a href="/pub/research/authors/profiles/kristian-kristiansen.en.html" >Kristian Kristiansen</a></li><li><a href="/pub/research/authors/profiles/cornelius-nicolay.en.html" >Cornelius Nicolay</a></li></ul></div><div class="main-publication">Economic Bulletin Issue 5, 2020</div><div class="ecb-langSelector"><span class="offeredLanguage"><a class='arrow' lang="en" href="/press/economic-bulletin/focus/2020/html/ecb.ebbox202005_04~1b3e9fcb8f.en.html"> <span class="ecb-full">English</span></a></span></div><div class='accordion'><div class="header"><div class="title">Details</div></div><div class="content-box"><dl><dt>Abstract</dt><dd>After a pronounced decline until mid-April 2020, near-term earnings growth expectations derived from surveys and derivatives pricing in euro area equity markets appear to have troughed as the economic recovery is expected to gradually take hold. At the same time, a number of indicators show that investors remain concerned about a more protracted weakness in the euro area economy. Moreover, and despite a significant improvement since the announcement of the pandemic emergency purchase programme (PEPP), market participants continue to price significant downside risks in equity markets in a highly uncertain environment. Nevertheless, equity prices continue to increase against the backdrop of a stabilisation in risk sentiment, global policy support, and the fact that tail risks of an imminent global financial crisis have faded to some extent. However, if current expectations of a recovery in earnings turn out to be overly optimistic, there will be substantial risks of significant renewed declines in equity prices.</dd><dt>JEL Code</dt><dd><strong>E44</strong> : Macroeconomics and Monetary Economics→Money and Interest Rates→Financial Markets and the Macroeconomy<br/><strong>E52</strong> : Macroeconomics and Monetary Economics→Monetary Policy, Central Banking, and the Supply of Money and Credit→Monetary Policy<br/><strong>G12</strong> : Financial Economics→General Financial Markets→Asset Pricing, Trading Volume, Bond Interest Rates<br/><strong>G15</strong> : Financial Economics→General Financial Markets→International Financial Markets<br/></dd></dl></div></div></dd><dt isoDate="2020-05-13"><div class="date">13 May 2020</div></dt><dd><div class="category">ECONOMIC BULLETIN - ARTICLE</div><div class="title"><a href="/press/economic-bulletin/articles/2020/html/ecb.ebart202003_02~4768be84e7.en.html" >Negative rates and the transmission of monetary policy</a></div><div class="authors"><ul><li><a href="/pub/research/authors/profiles/miguel-boucinha.en.html" >Miguel Boucinha</a></li><li><a href="/pub/research/authors/profiles/lorenzo-burlon.en.html" >Lorenzo Burlon</a></li><li><a href="/pub/research/authors/profiles/daniel-kapp.en.html" >Daniel Kapp</a></li></ul></div><div class="main-publication">Economic Bulletin Issue 3, 2020</div><div class="ecb-langSelector"><span class="offeredLanguage"><a class='arrow' lang="en" href="/press/economic-bulletin/articles/2020/html/ecb.ebart202003_02~4768be84e7.en.html"> <span class="ecb-full">English</span></a></span></div><div class='accordion'><div class="header"><div class="title">Details</div></div><div class="content-box"><dl><dt>Abstract</dt><dd>This article explains how negative rates are transmitted via banks and financial markets, both via standard transmission channels and via channels specific to negative interest rates. The latter can enhance the stimulus, but may also hinder it, in particular in the case of protracted periods of negative rates. Euro area bank profitability has been persistently low since the financial crisis, and this has the potential to impair bank lending. At the same time, profits have increased since 2014 and the impact of negative interest rates is assessed as broadly neutral so far, as the negative contribution to net interest income has been offset by the positive impact on borrower creditworthiness. Finally, the article reports empirical evidence – drawn from a range of studies – on how negative rates affect the broader economy, starting with bank portfolio allocation decisions, lending volumes and lending rates. The article then elaborates on the impact of the negative rate policy on key macroeconomic aggregates, notably economic activity and inflation.</dd><dt>JEL Code</dt><dd><strong>E42</strong> : Macroeconomics and Monetary Economics→Money and Interest Rates→Monetary Systems, Standards, Regimes, Government and the Monetary System, Payment Systems<br/><strong>E52</strong> : Macroeconomics and Monetary Economics→Monetary Policy, Central Banking, and the Supply of Money and Credit→Monetary Policy<br/><strong>G21</strong> : Financial Economics→Financial Institutions and Services→Banks, Depository Institutions, Micro Finance Institutions, Mortgages<br/></dd></dl></div></div></dd><dt isoDate="2019-11-20"><div class="date">20 November 2019</div></dt><dd><div class="category">FINANCIAL STABILITY REVIEW - BOX</div><div class="title"><a href="/press/financial-stability-publications/fsr/focus/2019/pdf/ecb~093cf4d6df.fsrbox201911_02.pdf?d06830ecff5bb59b9fbd18b621f56995" lang="fixed" >Valuations in corporate bond and equity markets</a></div><div class="authors"><ul><li><a href="/pub/research/authors/profiles/daniel-kapp.en.html" >Daniel Kapp</a></li><li><a href="/pub/research/authors/profiles/thomas-kostka.en.html" >Thomas Kostka</a></li><li><a href="/pub/research/authors/profiles/kristian-kristiansen.en.html" >Kristian Kristiansen</a></li><li><a href="/pub/research/authors/profiles/christian-sorensen.en.html" >Christian Sørensen</a></li></ul></div><div class="main-publication">Financial Stability Review Issue 2, 2019</div><div class="ecb-langSelector"><span class="offeredLanguage"><a class='pdf' lang="en" href="/press/financial-stability-publications/fsr/focus/2019/pdf/ecb~093cf4d6df.fsrbox201911_02.pdf"> <span class="ecb-full">English</span></a></span></div><div class='accordion'><div class="header"><div class="title">Details</div></div><div class="content-box"><dl><dt>Abstract</dt><dd>Global equity and corporate bond prices have increased steadily since the end of the euro area sovereign debt crisis. Equity prices relative to earnings expectations are at the upper end of their historical distribution and corporate bond yields in the euro area are on aggregate at a historical low. During this time, euro area equity and corporate bond prices have been supported by the large decline in benchmark interest rates, which – in turn – reflects a decline in nominal economic growth rates, as well as accommodative monetary policies, including measures that brought down the short and the long end of the yield curve</dd></dl></div></div></dd><dt isoDate="2019-05-29"><div class="date">29 May 2019</div></dt><dd><div class="category">FINANCIAL STABILITY REVIEW - BOX</div><div class="title"><a href="/press/financial-stability-publications/fsr/focus/2019/pdf/ecb~aade2dd586.fsrbox201905_08.pdf?ddeee0455f0f1279c9d145aa12a5367d" lang="fixed" >The Eurosystem’s asset purchase programme, risk-taking and portfolio rebalancing</a></div><div class="authors"><ul><li><a href="/pub/research/authors/profiles/lena-boneva.en.html" >Lena Boneva</a></li><li><a href="/pub/research/authors/profiles/margherita-giuzio.en.html" >Margherita Giuzio</a></li><li><a href="/pub/research/authors/profiles/daniel-kapp.en.html" >Daniel Kapp</a></li><li><a href="/pub/research/authors/profiles/christoph-kaufmann.en.html" >Christoph Kaufmann</a></li></ul></div><div class="main-publication">Financial Stability Review Issue 1, 2019</div><div class="ecb-langSelector"><span class="offeredLanguage"><a class='pdf' lang="en" href="/press/financial-stability-publications/fsr/focus/2019/pdf/ecb~aade2dd586.fsrbox201905_08.pdf"> <span class="ecb-full">English</span></a></span></div><div class='accordion'><div class="header"><div class="title">Details</div></div><div class="content-box"><dl><dt>Abstract</dt><dd>The Eurosystem’s asset purchase programme (APP) has contributed to a portfolio rebalancing of securities holdings within the euro area. The ECB’s asset purchases, with their largest component initiated in March 2015, have compressed the yields of securities across a wide range of asset classes. In line with the portfolio rebalancing transmission channel of monetary policy, many investors responded to these lower yields by shifting their holdings towards riskier securities with higher expected returns. Non-banks, in particular, have moved increasingly into less-liquid and lower-rated bonds as well as longer-term securities in a search for yield. To the extent that a slowdown in growth or other market or policy developments lead to an increase in term or risk premia, investors may rebalance back towards safer assets.</dd></dl></div></div></dd><dt isoDate="2018-06-28"><div class="date">28 June 2018</div></dt><dd><div class="category">ECONOMIC BULLETIN - ARTICLE</div><div class="title"><a href="/press/economic-bulletin/articles/2018/html/ecb.ebart201804_02.en.html" >Measuring and interpreting the cost of equity in the euro area</a></div><div class="authors"><ul><li><a href="/pub/research/authors/profiles/andre-geis.en.html" >André Geis</a></li><li><a href="/pub/research/authors/profiles/daniel-kapp.en.html" >Daniel Kapp</a></li><li><a href="/pub/research/authors/profiles/kristian-kristiansen.en.html" >Kristian Kristiansen</a></li></ul></div><div class="main-publication">Economic Bulletin Issue 4, 2018</div><div class="ecb-langSelector"><span class="offeredLanguage"><a class='arrow' lang="en" href="/press/economic-bulletin/articles/2018/html/ecb.ebart201804_02.en.html"> <span class="ecb-full">English</span></a></span></div><div class='accordion'><div class="header"><div class="title">Details</div></div><div class="content-box"><dl><dt>Abstract</dt><dd>Equity capital is among the main sources of funding for euro area non-financial corporations (NFCs), making it an important factor in the transmission of monetary policy. From a central bank perspective, improving the measurement and understanding of the cost of equity is therefore essential. Unlike the cost of debt, which has declined substantially in recent years, the cost of equity has remained relatively stable at elevated levels. Results from the analysis performed in this article suggest that a persistently high “equity risk premium” (ERP) has been the key factor underpinning the high cost of equity for euro area NFCs. In fact, since the start of the global financial crisis, increases in the ERP have largely offset the fall in the yield of risk-free assets. This article argues that the widely used workhorse model to derive the cost of equity and the ERP, namely the three-stage dividend discount model, can be improved upon. In particular, incorporating short-term earnings expectations, discounting payouts to investors with a discount factor with appropriate maturity, and considering share buy-backs all yield beneficial refinements. This in turn would strengthen the theory and basis of the model and improve the robustness of its estimates. Most notably, share buy-back activity seems to matter, specifically for the level of the ERP. Notwithstanding such improvements in the modelling approach, estimating the ERP, particularly its level, remains subject to considerable uncertainty. Ultimately, such uncertainty advocates the use of a variety of models and survey estimates, as well as a focus on the dynamics, rather than on the level, of the ERP. From an applied perspective, the article demonstrates that cost of equity modelling can be used to disentangle the different drivers of changes in equity prices. This is helpful from a monetary policy perspective, as changes in equity prices can contain important information about the economic outlook and warrant monitoring for financial stability purposes. Moreover, the article shows that adding an international perspective to the analysis of the ERP for the overall market may provide valuable insights for policymakers. For instance, the greater reliance on share buy-backs among companies in the United States than those in the euro area appears to be behind some of the recent steeper decline in the ERP in the United States when compared with the ERP in the euro area.</dd><dt>JEL Code</dt><dd><strong>E52</strong> : Macroeconomics and Monetary Economics→Monetary Policy, Central Banking, and the Supply of Money and Credit→Monetary Policy<br/><strong>G12</strong> : Financial Economics→General Financial Markets→Asset Pricing, Trading Volume, Bond Interest Rates<br/><strong>G32</strong> : Financial Economics→Corporate Finance and Governance→Financing Policy, Financial Risk and Risk Management, Capital and Ownership Structure, Value of Firms, Goodwill<br/><strong>G35</strong> : Financial Economics→Corporate Finance and Governance→Payout Policy<br/></dd></dl></div></div></dd><dt isoDate="2018-03-19"><div class="date">19 March 2018</div></dt><dd><div class="category">ECONOMIC BULLETIN - BOX</div><div class="title"><a href="/pub/pdf/other/ebbox201802_02.en.pdf?ff794247b908b9757b806d05daeb45a9" >Euro area sovereign bond market liquidity since the start of the PSPP</a></div><div class="authors"><ul><li><a href="/pub/research/authors/profiles/linas-jurksas.en.html" >Linas Jurkšas</a></li><li><a href="/pub/research/authors/profiles/daniel-kapp.en.html" >Daniel Kapp</a></li><li><a href="/pub/research/authors/profiles/ken-nyholm.en.html" >Ken Nyholm</a></li><li><a href="/pub/research/authors/profiles/julian-von-landesberger.en.html" >Julian von Landesberger</a></li></ul></div><div class="main-publication">Economic Bulletin Issue 2, 2018</div><div class="ecb-langSelector"><span class="offeredLanguage"><a class='pdf' lang="en" href="/pub/pdf/other/ebbox201802_02.en.pdf"> <span class="ecb-full">English</span></a></span></div><div class='accordion'><div class="header"><div class="title">Details</div></div><div class="content-box"><dl><dt>Abstract</dt><dd>The liquidity of euro area sovereign bond markets is important for the transmission of the ECB’s monetary policy. In particular, a high degree of liquidity fosters the link between the ECB’s monetary policy decisions, the yield curve, financial asset prices in general, and the overall cost and flow of finance in the economy. The liquidity of sovereign bond markets needs to be monitored more closely since the implementation of the ECB’s public sector purchase programme (PSPP), under which a significant share of outstanding euro area sovereign bonds has been bought. Against this background, this box presents some of the market liquidity indicators that the ECB monitors regularly. Overall, the indicators suggest that liquidity conditions in sovereign bond markets have not deteriorated since the start of the PSPP (on 9 March 2015).</dd><dt>JEL Code</dt><dd><strong>E52</strong> : Macroeconomics and Monetary Economics→Monetary Policy, Central Banking, and the Supply of Money and Credit→Monetary Policy<br/><strong>G12</strong> : Financial Economics→General Financial Markets→Asset Pricing, Trading Volume, Bond Interest Rates<br/><strong>G14</strong> : Financial Economics→General Financial Markets→Information and Market Efficiency, Event Studies, Insider Trading<br/></dd></dl></div></div></dd><dt isoDate="2017-05-05"><div class="date">5 May 2017</div></dt><dd><div class="category">WORKING PAPER SERIES - No. 2054</div><div class="title"><a href="/pub/pdf/scpwps/ecb.wp2054.en.pdf?c42be8125e6b3913630ad5c10fa1ae77" >Do stress tests matter? Evidence from the 2014 and 2016 stress tests</a></div><div class="authors"><ul><li><a href="/pub/research/authors/profiles/oana-maria-georgescu.en.html" >Oana-Maria Georgescu</a></li><li><a href="/pub/research/authors/profiles/marco-gross.en.html" >Marco Gross</a></li><li><a href="/pub/research/authors/profiles/daniel-kapp.en.html" >Daniel Kapp</a></li><li><a href="/pub/research/authors/profiles/christoffer-kok.en.html" >Christoffer Kok</a></li></ul></div><div class="ecb-langSelector"><span class="offeredLanguage"><a class='pdf' lang="en" href="/pub/pdf/scpwps/ecb.wp2054.en.pdf"> <span class="ecb-full">English</span></a></span></div><div class='accordion'><div class="header"><div class="title">Details</div></div><div class="content-box"><dl><dt>Abstract</dt><dd>Stress tests have been increasingly used in recent years by regulators to foster confidence in the banking sector by not only increasing its resilience via mandatory capital increases but also by enhancing transparency to allow investors to better discriminate between banks. In this study, using an event study approach, we explore how market participants reacted to the 2014 Comprehensive Assessment and the 2016 EBA EU-wide stress test. The results show that stress test disclosures revealed new information that was priced by the markets. We also provide evidence that the publication of stress test results enhanced price discrimination as the impact on bank CDS spreads and equity prices tended to be stronger for the weaker performing banks in the stress test. Finally, we provide some evidence that also sovereign funding costs were aﬀected in the aftermath of the stress test publications. The results provide insights into the eﬀects and usefulness of stress test-related disclosures.</dd><dt>JEL Code</dt><dd><strong>G14</strong> : Financial Economics→General Financial Markets→Information and Market Efficiency, Event Studies, Insider Trading<br/><strong>G18</strong> : Financial Economics→General Financial Markets→Government Policy and Regulation<br/><strong>G21</strong> : Financial Economics→Financial Institutions and Services→Banks, Depository Institutions, Micro Finance Institutions, Mortgages<br/></dd></dl></div></div></dd><dt isoDate="2014-07-28"><div class="date">28 July 2014</div></dt><dd><div class="category">OCCASIONAL PAPER SERIES - No. 154</div><div class="title"><a href="/pub/pdf/scpops/ecbop154.pdf?267bb27a00e665bdb01d863ee5b521f0" lang="fixed" >The impact of regulating occupational pensions in Europe on investment and financial stability</a></div><div class="authors"><ul><li><a href="/pub/research/authors/profiles/christoffer-kok.en.html" >Christoffer Kok</a></li><li><a href="/pub/research/authors/profiles/adrien-amzallag.en.html" >Adrien Amzallag</a></li><li><a href="/pub/research/authors/profiles/daniel-kapp.en.html" >Daniel Kapp</a></li></ul></div><div class="ecb-langSelector"><span class="offeredLanguage"><a class='pdf' lang="en" href="/pub/pdf/scpops/ecbop154.pdf"> <span class="ecb-full">English</span></a></span></div><div class='accordion'><div class="header"><div class="title">Details</div></div><div class="content-box"><dl><dt>Abstract</dt><dd>This study examines the European Commission</dd><dt>JEL Code</dt><dd><strong>G11</strong> : Financial Economics→General Financial Markets→Portfolio Choice, Investment Decisions<br/><strong>G18</strong> : Financial Economics→General Financial Markets→Government Policy and Regulation<br/><strong>G28</strong> : Financial Economics→Financial Institutions and Services→Government Policy and Regulation<br/><strong>G23</strong> : Financial Economics→Financial Institutions and Services→Non-bank Financial Institutions, Financial Instruments, Institutional Investors<br/><strong>C13</strong> : Mathematical and Quantitative Methods→Econometric and Statistical Methods and Methodology: General→Estimation: General<br/><strong>C23</strong> : Mathematical and Quantitative Methods→Single Equation Models, Single Variables→Panel Data Models, Spatio-temporal Models<br/></dd></dl></div></div></dd></dl></div></div><input id='t3' name='author-tab-group' type='radio'> <label for='t3'><span class='arrow'></span>External publications</label> <div class='tab-content'><div class="definition-list"><dl><dt><div>2023</div></dt><dd><div class="category">Dutch Central Bank</div><div class="title"><a href="https://www.dnb.nl/en/publications/research-publications/working-paper-2023/761-physical-and-transition-risk-premiums-in-euro-area-corporate-bond-markets/">Physical and transition risk premiums in euro area corporate bond markets</a></div><div class="authors"><ul><li>Bats, J., Bua, G., Kapp, D.</li></ul></div></dd><dt><div>2014</div></dt><dd><div class="category">Economic Modelling</div><div class="title"><a href="https://www.sciencedirect.com/science/article/pii/S026499931400323X">Stability periods between financial crises: The role of macroeconomic fundamentals and crises management policies</a></div><div class="authors"><ul><li>Bicaba, Z. T., Kapp, D., Molteni, F.</li></ul></div></dd><dt><div>2014</div></dt><dd><div class="category">The European Journal of Finance.</div><div class="title"><a href="https://www.tandfonline.com/doi/full/10.1080/1351847X.2014.880998">The optimal size of the European Stability Mechanism: A cost-benefit analysis</a></div><div class="authors"><ul><li>Kapp, Daniel</li></ul></div></dd><dt><div>2014</div></dt><dd><div class="category">Cuadernos de Economia</div><div class="title"><a href="https://www.elsevier.es/en-revista-cuadernos-economia-329-articulo-real-output-costs-financial-crises-S0210026613000411">Real Output Costs of Financial Crises: A Loss Distribution Approach</a></div><div class="authors"><ul><li>Kapp, D., Vega, M.</li></ul></div></dd><dt><div>2014</div></dt><dd><div class="category">Institute for New Economic Thinking</div><div class="title"><a href="https://www.ineteconomics.org/uploads/papers/Financial2520crises2520political2520constraint2520and2520policy2520responses2520_2520INET.pdf">Financial Crises, Political Constraints and Policy Responses</a></div><div class="authors"><ul><li>Bicaba, Z. T., Kapp, D., Molteni, F.</li></ul></div></dd><dt><div>2012</div></dt><dd><div class="category">Institute of Strategic Thinking</div><div class="title">Quantifying Real Output Costs of Financial Crises with the Help of Standard Insurance Tools</div><div class="authors"><ul><li>Kapp, D.</li></ul></div></dd><dt><div>2011</div></dt><dd><div class="category">CES.</div><div class="title"><a href="https://www.grade.org.pe/publicaciones/1172-heterogeneity-of-total-factor-productivity-across-latin-american-countries-evidence-from-manufacturing-firms/">Heterogeneity of total factor productivity across Latin American countries: Evidence from manufacturing firms</a></div><div class="authors"><ul><li>Kapp, D., Sanchez, A.</li></ul></div></dd></dl></div></div></div></div></div> </main> </div> <div id="feedback" class="hidden"> <div class="content-box"> <div class="initial"> <div class="title">Are you happy with this page?</div> <a class="button -inverted-color" id="feedback-yes">Yes</a> <a class="button -inverted-color" id="feedback-no">No</a> </div> <div class="second hidden"> <div class="title">What made you unhappy?</div> <a class="button -inverted-color" id="feedback-broken">Page not working</a> <a class="button -inverted-color" id="feedback-content">Information not useful</a> <a class="button -inverted-color" id="feedback-design">Design not attractive</a> <a class="button -inverted-color" id="feedback-other">Something else</a> </div> <div class="final hidden"> <div class="title">Thank you for letting us know!</div> </div> </div> </div> <footer id="ecb-doc-footer"> <div class="ecb-footerTop"> <div class="sitemap"> <a href="/home/sitedir/html/index.en.html" title="Site Directory">Site directory</a> </div> <div class="socialLinks"> <a class="inline-link" href="/home/socialmedia/html/index.en.html" title="Official social media channels">FOLLOW US</a> <a href="http://twitter.com/ecb" class="twitter" title="X"></a> <a href="https://www.linkedin.com/company/european-central-bank" class="linkedin" title="LinkedIn"></a> <a href="https://www.instagram.com/europeancentralbank/" class="instagram" title="Instagram"></a> <a href="https://www.youtube.com/user/ecbeuro" class="youtube" title="YouTube"></a> <a href="https://www.flickr.com/photos/europeancentralbank/sets/" class="flickr" title="Flickr"></a> <a href="https://soundcloud.com/europeancentralbank" class="soundcloud" title="Soundcloud"></a> <a href="/rss" class="rss" title="RSS news feeds"></a> </div> </div><div class="ecb-footerBottom"> <p><span>Copyright 2024, </span>European Central Bank</p> <div class="ecb-serviceNavigation"> <div class="ecb-serviceNavigationBox"> <div class="ecb-serviceNavigationBoxTitle">Useful links</div> <div class="ecb-serviceNavigationBoxLinks"> <ul> <li><a href="/careers/vacancies/html/index.en.html">Work with us</a></li> <li><a href="/services/glossary/html/index.en.html">Glossary</a></li> <li><a href="/services/links/html/index.en.html">Other institutions</a></li> </ul> </div> </div> <div class="ecb-serviceNavigationBox"> <div class="ecb-serviceNavigationBoxTitle">Using our site</div> <div class="ecb-serviceNavigationBoxLinks"> <ul> <li><a href="/services/disclaimer/html/index.en.html">Disclaimer & Copyright</a></li> <li><a href="/services/data-protection/privacy-statements/website/html/index.en.html">Privacy statement</a></li> <li><a href="/services/languagepolicy/html/index.en.html">Language policy</a></li> <li><a href="/services/using-our-site/technical-updates/html/index.en.html">Technical updates to this site</a></li> </ul> </div> </div> <div class="ecb-serviceNavigationBox"> <div class="ecb-serviceNavigationBoxTitle">Corporate Policies</div> <div class="ecb-serviceNavigationBoxLinks"> <ul> <li><a href="/services/data-protection/html/index.en.html">Data Protection</a></li> <li><a href="/ecb/access_to_documents/html/index.en.html">Access to documents</a></li> <li><a href="/services/responsible-disclosure/html/index.en.html">Responsible disclosure</a></li> </ul> </div> </div> <div class="ecb-serviceNavigationBox"> <div class="ecb-serviceNavigationBoxTitle">Contact</div> <div class="ecb-serviceNavigationBoxLinks"> <ul> <li><a href="/ecb/contacts/html/index.en.html">Contacts</a></li> <li><a href="/services/contacts/address/html/index.en.html">Address</a></li> <li><a href="/services/contacts/working-hours/html/index.en.html">Public holidays</a></li> </ul> </div> </div> </div> </div>  </footer> <style> [data-count]{ position: relative; 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