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EMU, Monetary Policy and the Role of Financial Constraints

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  • Cobham, Alex

    ()
    (Finance and Trade Policy Research Centre, Queen Elizabeth House, University of Oxford)

Abstract

This paper presents some preliminary findings on the impact of a single European monetary policy on industrial performance. Literature on the potential for differential monetary policy impact to drive asymmetric responses across the Union is surveyed, and the importance of the credit channel of policy is identified. The key role of financial constraints on firms is noted. A different treatment of the constraint is then suggested, and shown through modelling to be consistent with the stylised facts of firm size. An econometric approach based on this model is then outlined as the basis for future research.

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File URL: http://www.intech.unu.edu/publications/eifc-tf-papers/eifc01-6.pdf
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Bibliographic Info

Paper provided by United Nations University, Institute for New Technologies in its series EIFC - Technology and Finance Working Papers with number 6.

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Date of creation: 2001
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Handle: RePEc:dgr:unutaf:eifc01-6

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Web page: http://www.intech.unu.edu

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Keywords: Monetary Policy; Industrial Performance; Europe;

This paper has been announced in the following NEP Reports:

References

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Cited by:
  1. Cobham, Alex, 2004. "Investment Finance and Monetary Policy in Europe," EIFC - Technology and Finance Working Papers 39, United Nations University, Institute for New Technologies.

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