The paper compares the di¤erent timing and magnitude of mon-etary shocks across European countries. The problem the European Central Bank faces in setting a single monetary policy rule is analyzed starting from the di¤erences in the monetary transmission mechanism across EMU members. The econometric methodology applied is the Structural Vector Autoregression with constraints both on contem-poraneous and long term relationships among the variables of the estimated models. The results suggest the presence of asymmetric response to a monetary policy shock. In contrast with some empirical studies, the comparative analysis of the EMU members’ response to a contractionary monetary policy shock does not lead to an unambigu-ous positive relationship between country size and response widht.
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