IDEAS home Printed from https://ideas.repec.org/a/oup/ecpoli/v18y2003i37p469-501..html
   My bibliography  Save this article

Monetary transmission in the euro area: early evidence
[‘Micro effects of macro announcements: real-time price discovery in foreign exchange’]

Author

Listed:
  • Ignazio Angeloni
  • Michael Ehrmann

Abstract

Monetary transmission evidenceWe examine the euro area monetary policy transmission process using post-1999 data, with two main questions in mind: has it changed after – and because of – economic and monetary union (EMU) and, if so, is it becoming homogeneous across countries? Given the data limitations, we concentrate on three components of the transmission mechanism: the banking, the interest rate and the asset market channels. We find evidence that the transmission through banks has become more potent and homogeneous across countries. On the financial market channels, our evidence is somewhat weaker but suggestive. The interest rate channel appears to have changed even before EMU, and now affects national economies in a broadly similar way. The asset market channel (proxied by the stock market effects of monetary policy) also seems to work rather homogeneously across national markets (no comparison with pre-EMU is available here). A positive answer to both questions raised above represents, in our view, the best working hypothesis under current knowledge.— Ignazio Angeloni and Michael Ehrmann

Suggested Citation

  • Ignazio Angeloni & Michael Ehrmann, 2003. "Monetary transmission in the euro area: early evidence [‘Micro effects of macro announcements: real-time price discovery in foreign exchange’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 18(37), pages 469-501.
    • Handle: RePEc:oup:ecpoli:v:18:y:2003:i:37:p:469-501.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/1468-0327.00113_1
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    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:oup:ecpoli:v:18:y:2003:i:37:p:469-501.. 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: Oxford University Press (email available below). General contact details of provider: https://edirc.repec.org/data/cebruuk.html .

    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.