Cross-country differences in monetary policy transmission

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Cross-country differences in monetary policy transmission

Author Info

Robert-Paul Berben () (De Nederlandsche Bank, Monetary and Economic Policy Department, Westeinde 1, P.O. Box 98, 1017 ZN Amsterdam, Netherlands.)
Alberto Locarno () (Banca d´Italia,Via Nazionale 91, 00184 Rome, Italy.)
Julian Morgan () (European Central Bank, Kaiserstrasse 29, D-60311, Frankfurt am Main, Germany.)
Javier Valles () (Banco de España, Research Department, Alcalá 50, 28014 Madrid, Spain.)

Additional information is available for the following registered author(s):

Abstract

This paper examines possible explanations for observed differences in the transmission of euro area monetary policy in central bank large-scale macroeconomic models. In particular it considers the extent to which these differences are due to differences in the underlying economies or (possibly unrelated) differences in the modelling strategies adopted for each country. It finds that, against most yardsticks, the cross-country variations in the results are found to be plausible in the sense that they correspond with other evidence or observed characteristics of the economies in question. Nevertheless, the role of differing modelling strategies may also play a role. Important features of the models - for instance in the treatment of expectations or wealth - can have a major bearing on the results that may not necessarily reflect differences in the underlying economies.

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Paper provided by European Central Bank in its series Working Paper Series with number 400.

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Length: 63 pages
Date of creation: Oct 2004
Date of revision:
Handle: RePEc:ecb:ecbwps:20040400

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Paper
- Robert-Paul Berben & Alberto Locarno & Julian Morgan & Javier Vallés, 2005. "Cross-country differences in monetary policy transmission," Banco de EspaÃ±a Working Papers 0502, Banco de España. [Downloadable!]

Find related papers by JEL classification:
C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Other Model Applications
E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation

This paper has been announced in the following NEP Reports:

NEP-ALL-2005-10-04 (All new papers)
NEP-CBA-2005-10-04 (Central Banking)
NEP-EEC-2005-10-04 (European Economics)
NEP-FMK-2005-10-04 (Financial Markets)
NEP-MAC-2005-10-04 (Macroeconomics)
NEP-MON-2005-10-04 (Monetary Economics)

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

Ángel de la Fuente & Juan F. Jimeno, 2005. "The private and fiscal returns to schooling and the effect of public policies on private incentives to invest in education: a general framework and some results for the EU," Banco de EspaÃ±a Working Papers 0509, Banco de España. [Downloadable!]
Other versions:
- Angel De la Fuente & Juan F. Jimeno, 2005. "The Private and Fiscal Returns to Schooling and the Effect of Public Policies on Private Incentives to Invest in Education: A General Framework and Some Results for the EU," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
- Angel de la Fuente & Juan Francisco Jimeno, 2004. "The private and fiscal returns to schooling and the effect of public policies on private incentives to invest in education: a general framework and some results for the EU," UFAE and IAE Working Papers 635.04, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC). [Downloadable!]
- Angel de la Fuente & Juan Francisco Jimeno, 2008. "The private and fiscal returns to schooling and the effect of public policies on private incentives to invest in education: a general framework and some results for the EU," UFAE and IAE Working Papers 737.08, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC). [Downloadable!]
Agustín Maravall, 2005. "An application of the Tramo Seats automatic procedure; direct versus indirect adjustment," Banco de EspaÃ±a Working Papers 0524, Banco de España. [Downloadable!]
Óscar J. Arce & David López-Salido, 2006. "House Prices, Rents, and Interest Rates under Collateral Constraints," Banco de EspaÃ±a Working Papers 0610, Banco de España. [Downloadable!]
Ana del Río & Garry Young, 2005. "The determinants of unsecured borrowing: evidence from the British household panel survey," Banco de EspaÃ±a Working Papers 0511, Banco de España. [Downloadable!]
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- Ana Del-Río & Garry Young, . "The determinants of unsecured borrowing: evidence from the British Household Panel Survey," Bank of England working papers 263, Bank of England. [Downloadable!]
Gabriel Fagan & Vítor Gaspar, 2007. "Adjusting to the euro," Working Paper Series 716, European Central Bank. [Downloadable!]
Luis J. Álvarez & Pablo Burriel & Ignacio Hernando, 2005. "Do decreasing hazard functions for price changes make any sense?," Banco de EspaÃ±a Working Papers 0508, Banco de España. [Downloadable!]
Luis J. Álvarez & Pablo Burriel & Ignacio Hernando, 2005. "Price setting behaviour in Spain: evidence from micro PPI data," Banco de EspaÃ±a Working Papers 0527, Banco de España. [Downloadable!]
Francisco de Castro & Pablo Hernández de Cos, 2006. "The economic effects of exogenous fiscal shocks in Spain: a SVAR approach," Banco de EspaÃ±a Working Papers 0604, Banco de España. [Downloadable!]
Juan J. Dolado & Marcel Jansen & Juan F. Jimeno, 2005. "Dual employment protection legislation: a framework for analysis," Banco de EspaÃ±a Working Papers 0510, Banco de España. [Downloadable!]
Other versions:
- Dolado, Juan J. & Jansen, Marcel & Jimeno, Juan Francisco, 2005. "Dual Employment Protection Legislation: A Framework for Analysis," CEPR Discussion Papers 5033, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
- Juan J. Dolado & Marcel Jansen & Juan F. Jimeno, 2005. "Dual Employment Protection Legislation: A Framework for Analysis," IZA Discussion Papers 1564, Institute for the Study of Labor (IZA). [Downloadable!]
jerome henry & sandro momigliano & pablo hernandez de cos, 2005. "The short-term impact of government budgets on prices Evidence from macroeconometric models," Macroeconomics 0501020, EconWPA. [Downloadable!]
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- Jerome Henry & Pablo Hernandez de Cos & Sandro Momigliano, 2004. "The short-term impact of government budgets on prices; evidence from macroeconometric models," Temi di discussione (Economic working papers) 523, Bank of Italy, Economic Research Department. [Downloadable!]
Ana del Río & Garry Young, 2005. "The impact of unsecured debt on financial distress among British households," Banco de EspaÃ±a Working Papers 0512, Banco de España. [Downloadable!]
Other versions:
- Ana Del-Río & Garry Young, . "The impact of unsecured debt on financial distress among British households," Bank of England working papers 262, Bank of England. [Downloadable!]
Robert-Paul Berben & Ricardo Mestre & Julian Morgan & Theodoros Mitrakos & Nikolaos G. Zonzilos, 2005. "Inflation persistence in structural macroeconomic models (RG10)," Working Paper Series 521, European Central Bank. [Downloadable!]
Paloma López-García & Sergio Puente, 2006. "Business demography in Spain: determinants of firm survival," Banco de EspaÃ±a Working Papers 0608, Banco de España. [Downloadable!]

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