'Whatever it takes' and the role of Eurozone news. Issue 16 (20th September 2018) - Van Der Heijden, Minke
ABSTRACT: 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.