The Effects of Monetary Policy in the Euro Area
AbstractThis paper presents evidence on the monetary transmission process in the euro area, based on macroeconomic data and on micro data on banks. According to the estimations of macro vector autoregression and macroeconometric models, a monetary policy tightening significantly reduces output and--after a time lag--also prices. The effect on output is temporary, while that on prices is permanent. Clear patterns of significant asymmetries in the monetary policy effects across countries do not emerge. The estimations based on micro data on banks show that the main factor that determines the average bank's response to monetary policy is its degree of liquidity: the lower its share of liquid assets in total assets, the more strongly does a bank reduce its lending in response to a monetary tightening. Bank size does not emerge as an important factor for a bank's reaction to monetary policy. These results hold for virtually all member countries of the European Monetary Union, despite the differences in their banking systems. Copyright 2003, Oxford University Press.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by Oxford University Press in its journal Oxford Review of Economic Policy.
Volume (Year): 19 (2003)
Issue (Month): 1 ()
Contact details of provider:
Web page: http://oxrep.oupjournals.org/
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.