Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/39616 
Year of Publication: 
2002
Series/Report no.: 
ZEI Working Paper No. B 04-2002
Publisher: 
Rheinische Friedrich-Wilhelms-Universität Bonn, Zentrum für Europäische Integrationsforschung (ZEI), Bonn
Abstract: 
This paper uses a semi-structural dynamic modelling approach to investigate asymmetric monetary transmission in Europe. A system of equations containing reaction functions for monetary policy, output and inflation equations is simultaneously estimated for France, Germany, and Italy. Extensive cross equation tests show that relatively large differences in simulated impulse responses are still consistent with the notion that the transmission mechanism is homogeneous across the three major EMU countries. However, monetary policy impulses show a relatively stronger effect on the output gap in Italy and Germany. Out-of-sample tests do not find a structural break in the transmission mechanisms prior to EMU.
Subjects: 
European Monetary Union
Monetary Policy
Semi-structural modelling
JEL: 
E52
F41
Document Type: 
Working Paper

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