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The ECB’s Experience of Monetary Policy in a Financially Fragmented Euro Area


  • Alain Durré

    (European Central Bank and Institut d’Economie Scientifique et de Gestion (IÉSEG) – School of Management)

  • Angela Maddaloni

    (European Central Bank)

  • Francesco Paolo Mongelli

    (European Central Bank and Goethe University Frankfurt)


This paper examines the various stages of the sovereign debt crisis of the euro area, the ensuing re-segmentation of several financial market segments and the disruptions in the transmission of monetary policy impulses. The paper provides the first systematic attempt to describe the European Central Bank’s (ECB’s) monetary policy during these 6 years of a mutating crisis. Its main contribution is to merge an analysis of economic and financial developments with that of the flaws in the Economic and Monetary Union’s institutional framework and governance. Although both interest rate and bank lending channels were severely weakened during the crisis, the transmission of the monetary policy stance did not break down, partly due to the increased intermediation role of the ECB.

Suggested Citation

  • Alain Durré & Angela Maddaloni & Francesco Paolo Mongelli, 2014. "The ECB’s Experience of Monetary Policy in a Financially Fragmented Euro Area," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 56(3), pages 396-423, September.
  • Handle: RePEc:pal:compes:v:56:y:2014:i:3:p:396-423

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    Cited by:

    1. repec:kap:openec:v:28:y:2017:i:5:d:10.1007_s11079-017-9466-8 is not listed on IDEAS
    2. repec:wsi:serxxx:v:62:y:2017:i:01:n:s0217590817400033 is not listed on IDEAS
    3. Orlowski, Lucjan T., 2016. "Co-movements of non-Euro EU currencies with the Euro," International Review of Economics & Finance, Elsevier, vol. 45(C), pages 376-383.

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