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Monthly Report: Eurosystem monetary policy affects risk appetite in euro area financial markets

21.01.2025

The tendency of monetary policy to influence investors’ risk appetite has a significant impact on the effectiveness of the Eurosystem’s monetary policy on the macroeconomy and financial markets, according to an article in the latest Monthly Report. In it, the authors examine the impact of monetary policy measures on the risk appetite of euro area investors. Their analysis is based on a new broad-based indicator of risk appetite in the euro area.

Monthly Report: Eurosystem monetary policy affects risk appetite in euro area financial markets
The European Central Bank in Frankfurt am Main ©Robert Metsch / ECB