Impacts are derived on the basis of an arbitrage-free econometric term structure model with a quantity factor (see Eser, F. et al. (2019), “Tracing the impact of the ECB’s asset purchase programme on the yield curve”, Working Paper Series, No 2293, ECB, July).
In this regard, government has an important role to play in creating a stable environment underpinned by a legal framework that brings about certainty and supported by regulatory and supervisory arrangements that help to ensure constructive incentives for financial market participants.