Monetary Policy Transmission in the Euro Area: Any Changes after Emu?
By Ignazio Angeloni, Michael Ehrmann. Social Science Research Network, 2003
178 citations recorded by the source corpus.
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. JEL Classification: E43, E52, G21
Subfields: Economics and Econometrics, Finance
View Paper: https://www.semanticscholar.org/paper/b8ee7f62371ca761df44d8bcbc46c2e59f37eb71
How researchers see this paper
The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.
In Economics and Econometrics
- Marcel Fratzscher
- Michael Ehrmann
- C. Borio
- Jakob de Haan
- Mathias Drehmann
- Piti Disyatat
- M. Juselius
- Deren Unalmis
In Finance
- Michael Ehrmann
- C. Borio
- Marcel Fratzscher
- Jakob de Haan
- Mathias Drehmann
- Piti Disyatat
- M. Juselius
- Deren Unalmis
Citations in the corpus
- The impact of the ECB's conventional and unconventional monetary policies on stock markets (2016, background): “Angeloni and Ehrmann (2003) find that stock prices of telecommunications, consumer goods, technology and finance firms seem most sensitive to policy surprises.”
- Monetary transmission in the euro area: early evidence (2003, unknown): “A review of the recent literature is contained in an earlier version of this paper: see Angeloni and Ehrmann (2003).”
- Monetary Policy, the Financial Cycle and Ultralow Interest Rates (2016, background): “10 For some cross-country information on these arrangements and a discussion of their importance in the transmission mechanism, see eg Borio (1996) and Angeloni and Ehrmann (2003).”
- Taking Stock: Monetary Policy Transmission to Equity Markets (2004, methodology): “In a similar fashion to the tests employed in this paper, Angeloni and Ehrmann (2003) analyze crosssectional responses of stock market returns to monetary policy in the euro area.”