Monetary transmission (original) (raw)
Monetary transmission evidence SUMMARY We examine the euro area monetary policy transmission process using post-1999 data, with two main questions in mind: has it changed after - and because of - economic and monetary union (EMU) and, if so, is it becoming homogeneous across countries? Given the data limitations, we concentrate on three components of the transmission mechanism: the banking, the interest rate and the asset market channels. We find evidence that the transmission through banks has become more potent and homogeneous across countries. On the financial market channels, our evid- ence is somewhat weaker but suggestive. The interest rate channel appears to have changed even before EMU, and now affects national economies in a broadly similar way. The asset market channel (proxied by the stock market effects of monetary policy) also seems to work rather homogeneously across national markets (no comparison with pre-EMU is available here). A positive answer to both questions ra...
Related papers
Monetary Transmission in the Euro Area: Does the Interest Rate Channel Explain it All?
2003
Drawing on recent Eurosystem research that uses a range of econometric techniques and a number of new data sets, we propose a comprehensive description of how monetary policy affects the euro area economy. We focus mainly on three questions: (1) what are the stylized facts concerning the transmission of monetary policy for the area as a whole and for individual
Monetary policy transmission in the euro area: any changes after EMU?
2003
We examine the euro area monetary policy transmission process using post-1999 data, with two main questions in mind: has it changed after - and because of - EMU and, if so, is it becoming homogeneous across countries. Given the data limitations, we concentrate on three blocks of transmission: the banking, interest-rate and asset-market channels. We find evidence that the transmission
The transmission of monetary policy in the European countries
1996
SUMMARY The effects of monetary policy may change from one country to another for various reasons. The impact of monetary policy, even when such policy is concentrated on interest rates, may have numerous repercussions: on credit, on the quantity of money and ...
Loading Preview
Sorry, preview is currently unavailable. You can download the paper by clicking the button above.