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Monetary transmission mechanism in Central and Eastern Europe: Gliding on a wind of change

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Author Info
Coricelli, Fabrizio () (University of Siena, University of Ljubljana and CEPR)
Égert, Balázs () (Oesterreichische Nationalbank)
MacDonald, Ronald () (University of Glasgow and CESIfo)

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Abstract

This paper surveys recent advances in empirical studies of the monetary transmission mechanism (MTM), with special attention to Central and Eastern Europe. In particular, while laying out the functioning of the separate channels in the MTM, it explores possible interrelations between different channels and their impact on prices and the real economy. The empirical findings for Central and Eastern Europe are then briefly compared with results for industrialized countries, especially for the euro area. We highlight potential pitfalls in the literature and assess the relative importance, and potential development, of the different channels, emphasizing the relevant asymmetries between Central and Eastern European countries and the euro area.

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Publisher Info
Paper provided by Bank of Finland, Institute for Economies in Transition in its series BOFIT Discussion Papers with number 8/2006.

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Length: 59 pages
Date of creation: 14 Aug 2006
Date of revision:
Handle: RePEc:hhs:bofitp:2006_008

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Postal: Bank of Finland, BOFIT, P.O. Box 160, FI-00101 Helsinki, Finland
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Related research
Keywords: monetary transmission transition Central and Eastern Europe credit channel interest rate channel interest-rate pass-through exchange rate channel exchange rate pass-through asset price channel

Find related papers by JEL classification:
E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
F31 - International Economics - - International Finance - - - Foreign Exchange
O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
P20 - Economic Systems - - Socialist Systems and Transition Economies - - - General

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