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Do Euro Area Countries Respond Asymmetrically to the Common Monetary Policy?

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  • Matteo Luciani
  • Antoniomaria Conti
  • Matteo Barigozzi

Abstract

We investigate the possible existence of asymmetries among Euro Area countries reactions to the European Central Bank monetary policy. Our analysis is based on a Structural Dynamic Factor model estimated on a large panel of Euro Area quarterly variables. Although the introduction of the euro has changed the monetary transmission mechanism in the individual countries towards a more homogeneous response, we find that differences still remain between North and South Europe in terms of prices and unemployment. These results are the consequence of country-specific structures, rather than of European Central Bank policies.

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Paper provided by ULB -- Universite Libre de Bruxelles in its series ULB Institutional Repository with number 2013/153330.

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Date of creation: 23 Jun 2013
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Publication status: Published in: Oxford bulletin of economics and statistics (2013)
Handle: RePEc:ulb:ulbeco:2013/153330

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