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α: calibrated so average coauthorship-adjusted count equals average raw count
In the aftermath of the financial crises started in 2008, policy rates reached their zero lower bound. Central banks around the world aimed to stimulate economic growth through asset purchases which boosted confidence and asset prices as well as lowered yields on sovereign bonds. Spillovers from euro area asset purchases to non-eurozone countries have been less studied in the literature. In our event study analysis using daily data 2014–2017, we find that sovereign bond yields of six Central and Eastern European countries drop by around 1–5 basis points in a two-day time window in response to the announcements of the European Central Bank. We also find that credit spreads fall and national currencies appreciate against the euro. These effects materialised through the confidence and signalling channels, which enhanced investments and raised inflation expectations, respectively.