What will I find in this section?
Technical terms, unfortunately, cannot always be avoided – particularly when it comes to complex topics such as monetary policy. This is why we have compiled a glossary with a wide range of terms, arranged in alphabetical order and each with a short explanation.
- ABCP (Asset-backed commercial paper)
- ABS (Asset-backed security)
- ABSPP (Asset-Backed Securities Purchase Programme)
- Act to Modernise Accounting Law (BilMoG)
- Annuity loan
- APP (Asset purchase programme)
- Asset-backed commercial paper (ABCP)
- Asset-Backed Securities Purchase Programme (ABSPP)
- Asset-backed security (ABS)
- Automatic stabilisers
- Autonomous factors
Asset purchase programme (APP)
The asset purchase programme (APP) was adopted at the beginning of 2015. It is sometimes also referred to as the expanded asset purchase programme (EAPP). The APP initially consisted of three components: the covered bond purchase programme (CBPP 3; launched in October 2014), the asset-backed securities purchase programme (ABSPP; launched in November 2014) and the public sector asset purchase programme (PSPP; launched in March 2015). The corporate sector purchase programme (CSPP) was added as a further component in June 2016. Under the APP, the Eurosystem has purchased around €60 billion worth of securities every month from March 2015; from March 2016 to March 2017, the monthly purchasing volume totalled €80 billion, afterwards again around €60 billion. From January 2018 on the monthly purchasing volume totals €30 billion. The APP is also referred to as "quantitative easing". This is taken to mean the purchase of debt securities by the central bank for monetary policy purposes with the aim of exerting downward pressure on the level of market interest rates. The APP is set to run until September 2018 at least, and longer if necessary – until the Governing Council recognises that inflation is approaching the target of "below, but close to, 2%" over the medium term.