| Author (Corporate) | European Central Bank |
|---|---|
| Series Title | ECB Working Paper |
| Series Details | No.240, July 2003 |
| Publication Date | July 2003 |
| Content Type | Overview |
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Article abstract: 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 through banks has become more potent and homogeneous across countries because of EMU. On the financial-market channels, our evidence is somewhat weaker but suggestive. The interest-rate channel appears to have changed even before EMU, and to now affect 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 raised above represents, in our view, the best working hypothesis under current knowledge. |
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| Source Link | http://www.ecb.int/pub/pdf/scpwps/ecbwp240.pdf |
| Subject Categories | Business and Industry, Economic and Financial Affairs |
| Countries / Regions | Europe |
