The monetary transmission mechanism in the euro area: more evidence from VAR analysis

Arbeitspapier

This paper applies the identified VAR methodology to synthetic euro area data from 1980 till 1998 to study the macro-economic effects of an unexpected change in monetary policy in the euro area. The focus is on the area-wide monetary transmission. It is shown that the overall macro-economic effects of a monetary policy shock in the euro area are very similar to those estimated for the United States and are surprisingly stable over time. In addition, the paper contains a number of robustness checks with alternative identification schemes and examines how various real and financial variables (such as the GDP or money components) respond to an area-wide monetary policy impulse

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ECB Working Paper ; No. 91

Classification and Topics

• Classification: Wirtschaft ; Monetary Policy
• Subject: monetary transmission mechanism ; vector autoregressions

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Peersman, Gert ; Smets, Frank
• Event: Veröffentlichung
• (who): European Central Bank (ECB)
• (where): Frankfurt a. M.
• (when): 2001

Further information

• Handle: http://hdl.handle.net/10419/152525
• Last update: 10.03.2025, 11:42 AM CET