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The importance of financial structure for monetary transmission in Europe

Author

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  • G.J. de Bondt
  • A.C.J. Stokman

Abstract

Countries differ as to financial structure. That goes also for countries taking part in the Economic and Monetary Union, EMU. As a result, the ECB's monetary policy does not necessarily affect economic activity and price developments in individual euro area countries to the same extent. The study into the importance of financial structure for monetary transmission therefore figures prominently on the agenda of monetary policy makers. This paper, based in part on research done at the Bank, discusses several aspects of the link between monetary transmission and financial structure, and focuses especially on the European situation and the future.

Suggested Citation

  • G.J. de Bondt & A.C.J. Stokman, 2000. "The importance of financial structure for monetary transmission in Europe," WO Research Memoranda (discontinued) 616, Netherlands Central Bank, Research Department.
  • Handle: RePEc:dnb:wormem:616
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    File URL: https://www.dnb.nl/binaries/wo0616_tcm46-145933.pdf
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    Cited by:

    1. Dieter Gerdesmeier & Hans-Eggert Reimers & Barbara Roffia, 2016. "Asset Prices and Consumer Prices: Exploring the Linkages," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot GmbH, Berlin, vol. 62(3), pages 169-186.
    2. I. Arnold & C.J.M. Kool & K. Raabe, 2005. "New evidence on the firm size effects in US monetary policy transmission," Working Papers 05-11, Utrecht School of Economics.
    3. Ehrmann, Michael & Gambacorta, Leonardo & Martinéz Pagés, Jorge & Sevestre, Patrick & Worms, Andreas, 2001. "Financial systems and the role of banks in monetary policy transmission in the euro area," Working Paper Series 0105, European Central Bank.
    4. Ehrmann, Michael & Gambacorta, Leonardo & Martinéz Pagés, Jorge & Sevestre, Patrick & Worms, Andreas, 2001. "Financial systems and the role of banks in monetary policy transmission in the euro area," Working Paper Series 0105, European Central Bank.
    5. Calza Alessandro & Sousa João, 2006. "Output and Inflation Responses to Credit Shocks: Are There Threshold Effects in the Euro Area?," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, pages 1-21.

    More about this item

    Keywords

    monetary transmission; financial structure; EMU;

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • G20 - Financial Economics - - Financial Institutions and Services - - - General

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