Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/152674
Authors: 
Angeloni, Ignazio
Ehrmann, Michael
Year of Publication: 
2003
Series/Report no.: 
ECB Working Paper 240
Abstract: 
We 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 ­ EMU and, if so, is it becoming homogeneous across countries. Given the data limitations, we concentrate on three blocks of transmission: the banking, interest-rate and asset-market channels. We find evidence that the transmission through banks has become more potent and homogeneous across countries because of EMU. On the financial-market channels, our evidence is somewhat weaker but suggestive. The interest-rate channel appears to have changed even before EMU, and to now affect 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.
Subjects: 
bank and financial integration
euro
Monetary policy transmission
JEL: 
E43
E52
G21
Document Type: 
Working Paper

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