Abstract

http://ssrn.com/abstract=447272
 
 

References (50)



 
 

Citations (50)



 


 



The Output Composition Puzzle: A Difference in the Monetary Transmission Mechanism in the Euro Area and U.S


Ignazio Angeloni


Italian Finance Ministry - International Financial Relations

Anil K. Kashyap


University of Chicago - Booth School of Business; National Bureau of Economic Research (NBER)

Benoit Mojon


European Central Bank (ECB)

Daniele Terlizzese


Bank of Italy

September 2003

NBER Working Paper No. w9985

Abstract:     
We revisit recent evidence on how monetary policy affects output and prices in the U.S. and in the euro area. The response patterns to a shift in monetary policy are similar in most respects, but differ noticeably as to the composition of output changes. In the euro area investment is the predominant driver of output changes, while in the U.S. consumption shifts are significantly more important. We dub this difference the output composition puzzle and explore its implications and several potential explanations for it. While the evidence seems to point at differences in consumption responses, rather than investment, as the proximate cause for this fact, the source of the consumption difference remains a puzzle.

Number of Pages in PDF File: 52

working papers series


Download This Paper

Date posted: September 21, 2003  

Suggested Citation

Angeloni, Ignazio and Kashyap, Anil K. and Mojon, Benoit and Terlizzese, Daniele, The Output Composition Puzzle: A Difference in the Monetary Transmission Mechanism in the Euro Area and U.S (September 2003). NBER Working Paper No. w9985. Available at SSRN: http://ssrn.com/abstract=447272

Contact Information

Ignazio Angeloni
Italian Finance Ministry - International Financial Relations ( email )
Via XX Settembre 97
Rome, Rome 00187
Italy
Anil K. Kashyap (Contact Author)
University of Chicago - Booth School of Business ( email )
5807 S. Woodlawn Avenue
Chicago, IL 60637
United States
773-702-7260 (Phone)
773 702-0458 (Fax)
National Bureau of Economic Research (NBER) ( email )
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
773-702-7260 (Phone)
773-702-0458 (Fax)
Benoit Mojon
European Central Bank (ECB) ( email )
Kaiserstrasse 29
Frankfurt am Main, D-60311
Germany
+49 69 13 44 7849 (Phone)
+49 69 13 44 6000 (Fax)
Daniele Terlizzese
Bank of Italy ( email )
Via Nazionale 91
Rome, 00184
Italy
Feedback to SSRN


Paper statistics
Abstract Views: 1,017
Downloads: 19
References:  50
Citations:  50

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo2 in 0.500 seconds