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The Transmission Mechanism of European Monetary Policy: Is There Heterogeneity? Is it Changing over Time? Author info | Abstract | Publisher info | Download info | Related research | Statistics Matteo Ciccarelli
Alessandro Rebucci
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This paper investigates the transmission mechanism of monetary policy in the four largest euro area countries by means Bayesian estimation of dynamic econometric models. Based on pre-EMU evidence from Germany, France, Italy, and Spain, we show that: (i) there are differences in the timing of the effects of monetary policy on economic activity, but their cumulative impact after two years is rather homogeneous; (ii) the transmission mechanism seems to have changed over time in the run-up to EMU but its degree of heterogeneity has not decreased; (iii) the "European-wide" effects of monetary policy may have become faster in the second half of the 1990s. We interpret this evidence by conjecturing that the transmission mechanism of monetary policy had already become relatively homogenous in the second part of the 1990s.
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Paper provided by International Monetary Fund in its series IMF Working Papers with number
02/54.
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Length: 42 pages
Date of creation: 02 Apr 2002Date of revision:
Handle: RePEc:imf:imfwpa:02/54Contact details of provider: Postal: International Monetary Fund, Washington, DC USA Phone: (202) 623-7000 Fax: (202) 623-4661 Email: Web page: http://www.imf.org/external/pubind.htm More information through EDIRC
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Keywords: Monetary policy France Germany Italy Spain European Economic and Monetary Union Economic policy Economic models Other versions of this item:
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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.)
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