
The Asymmetric Effects of a Common Monetary Policy in Europe
The Asymmetric Effects of a Common Monetary Policy in Europe
- Guglielmo Maria Caporale Alaa M. Soliman
- 세종대학교 경제통합연구소
- Journal of Economic Integration
- 제24권 제3호
- 등재여부 : KCI등재
- 2009.09
- 455 - 475 (21 pages)
This paper examines the monetary transmission mechanism in six EU member states. It provides useful empirical evidence for assessing the impact of a common monetary policy in the early stages of EMU, and enables us to form a view on how the regime change represented by EMU is likely to be translated into changes in policy multipliers in the various EU countries. The empirical analysis applies techniques recently developed by Wickens and Motto (2001) for identifying shocks by estimating a VECM for the endogenous variables, and a stationary VAR in first differences for the exogenous variables. Our findings suggest that there are significant differences between EU countries in the transmission mechanism of monetary policy.
Ⅰ. Introduction
Ⅱ. Differences in the Monetary Transmission Mechanism
Ⅲ. Identifying Monetary Shocks
Ⅳ. Empirical Results
Ⅴ. Conclusions