This paper assesses the impact of the European Central Bank’s (ECB’s) Public Sector Purchase Program (PSPP) on Eurozone unemployment rates. Using a panel dataset, I construct a series of OLS models to test the relationship in 18 Eurozone countries. Results suggest that PSPP purchases do not significantly influence Eurozone unemployment rates. However, the strength of the relationship changes depending on monetary policy lag time and the sub-regions examined. The findings contribute to the debate surrounding how the ECB conducts the PSPP as well as to the literature studying monetary policy’s effect on the real economy.
