@techreport{Blaes2009Money,
abstract = {This paper investigates the transmission of monetary policy in the euro area based on the factor augmented vector autoregressive approach of Bernanke, Boivin and Eliasz (2005) as well as on a standard VAR model. We focus on the reaction of monetary aggregates to a one-off monetary policy shock. We find that - as theory suggests - money growth is dampened by a restrictive monetary policy stance in the longer term. In the short-run, however, M3 growth may increase due to portfolio shifts caused by the rise in the short-term interest rate. This has consequences for the interpretation of money growth as an input for monetary policy decisions.},
address = {Frankfurt, M.},
author = {Barno Blaes},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {C32; E40; E52; 330; Monetary policy transmission; FAVAR; VAR; money stock; euro area.; Geldpolitik; Transmissionsmechanismus; Geldmenge; Europ\"{a}ische Wirtschafts- und W\"{a}hrungsunion; VAR-Modell; Sch\"{a}tzung; EU-Staaten},
language = {eng},
number = {2009,18},
publisher = {Dt. Bundesbank},
title = {Money and monetary policy transmission in the euro area: evidence from FAVAR- and VAR approaches},
type = {Discussion Paper Series 1: Economic Studies},
url = {http://hdl.handle.net/10419/27744},
year = {2009}
}

