Arbeitspapier
The cost channel effect of monetary transmission: How effective is the ECB's low interest rate policy for increasing inflation?
We examine whether monetary transmission during the financial and sovereign debt crisis was dominated by the cost channel or by the demand-side channel effect. We use two approaches to track down the potential passthrough of changes in the monetary policy rate to those in consumer prices. First, we utilize panel data from the German manufacturing industry. Second, we conduct time series analyses for Germany, Italy, and Spain. We find that when manufacturing firms' interest costs drop, the changes in their respective industry's price index are smaller one year later. This finding is consistent with the cost channel theory. Taken together, the results of both panel data and time series analyses imply that the ECB's low interest rate policy has worked better for boosting inflation in Italy and Spain than in Germany.
- Sprache
-
Englisch
- Erschienen in
-
Series: DIW Discussion Papers ; No. 1654
- Klassifikation
-
Wirtschaft
Financial Crises
Price Level; Inflation; Deflation
- Thema
-
inflation
cost channel
monetary transmission
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Schäfer, Dorothea
Stephan, Andreas
Hoang, Khanh Trung
- Ereignis
-
Veröffentlichung
- (wer)
-
Deutsches Institut für Wirtschaftsforschung (DIW)
- (wo)
-
Berlin
- (wann)
-
2017
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Schäfer, Dorothea
- Stephan, Andreas
- Hoang, Khanh Trung
- Deutsches Institut für Wirtschaftsforschung (DIW)
Entstanden
- 2017
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