IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-12-00515.html
   My bibliography  Save this article

Business lending rate pass-through in the Eurozone: monetary policy transmission before and after the financial crash

Author

Listed:
  • Christophe Blot

    (OFCE)

  • Fabien Labondance

    (Université de La Réunion)

Abstract

The aim of the paper is to understand how the financial crisis has affected the interest rate pass-through (PT) in the Eurozone between market rates and bank interest rates. We have applied a SUR-ECM model. This methodology allows testing for the homogeneity of the PT of the euro area countries. The main results of this investigation are the following. First, not surprisingly, we show that the financial turmoil since October 2008 has drastically affected the interest rate PT in the Eurozone. Second, the PT since the crisis is less complete than in the period previously studied. Third, nevertheless, it appears that the homogeneity between the Eurozone members has increased.

Suggested Citation

  • Christophe Blot & Fabien Labondance, 2013. "Business lending rate pass-through in the Eurozone: monetary policy transmission before and after the financial crash," Economics Bulletin, AccessEcon, vol. 33(2), pages 973-985.
    • Handle: RePEc:ebl:ecbull:eb-12-00515
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/Pubs/EB/2013/Volume33/EB-13-V33-I2-P93.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Eurozone; interest rate pass-through; Financial crisis.;
    All these keywords.

    JEL classification:

    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-12-00515. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John P. Conley (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.