Monetary Policy Effects: Evidence from the Portuguese Flow of Funds
AbstractThis paper uses a VAR approach to study the transmission of monetary policy shocks in Portugal, focusing in particular on the financial decisions of households, corporations (financial/non-financial), the government and the rest of the world. We confirm that, in many ways, households and firms react in a similar way as found in other countries, with evidence that the monetary policy shock has a contractionary effect on economic activity and increases the financing needs of households and non-financial corporations. We also find evidence that the financial sector plays an important role, supplying the necessary funds to these sectors. We do not find much evidence of a significant systematic behaviour of the government or the rest of the world.
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Bibliographic InfoPaper provided by Banco de Portugal, Economics and Research Department in its series Working Papers with number w201014.
Date of creation: 2010
Date of revision:
Find related papers by JEL classification:
- E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
- G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-07-31 (All new papers)
- NEP-CBA-2010-07-31 (Central Banking)
- NEP-MAC-2010-07-31 (Macroeconomics)
- NEP-MON-2010-07-31 (Monetary Economics)
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- Bonci, Riccardo, 2011.
"Monetary policy and the flow of funds in the euro area,"
Working Paper Series
1402, European Central Bank.
- Riccardo Bonci, 2012. "Monetary policy and the flow of funds in the euro area," Temi di discussione (Economic working papers) 861, Bank of Italy, Economic Research and International Relations Area.
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