Unconventional monetary policy slashes EMU sovereign debt spreads during crisis.
The researchers looked at how European countries' debt prices are affected by different monetary policies and risk factors. They found that unconventional monetary policy during the debt crisis helped lower debt prices significantly. Also, when the risk of investing in bonds increased, debt prices went up. Changes in how easy it is to buy and sell bonds also played a role in debt price changes. Overall, common factors like systematic risk had a big impact on debt prices, especially during the crisis.