Industry Effects of Monetary Policy in Germany

32 Pages Posted: 11 Aug 1999

See all articles by Bernd Hayo

Bernd Hayo

University of Marburg - School of Business & Economics

Birgit Uhlenbrock

University of Bonn

Abstract

This paper is on monetary policy transmission. First, it asks the question whether industries are affected differently by monetary policy shocks. Here both output and price effects are compared. Second, some industry characteristics are explored which may help to understand the existence of asymmetric effects. Third, since industries are regionally clustered, possible regional effects are being discussed as well.

The analysis takes place within a VAR framework, and monthly data on West-German industries are being employed. The results indicate that about one half of German industries show significantly different reactions compared to the aggregate. These differences can be partially explained by varying capital-output-ratios, export-orientation and subsidies. Finally it is likely, at least in the case of the German Lander, that asymmetric regional effects of monetary policy shocks will occur.

JEL Classification: E32, E52

Suggested Citation

Hayo, Bernd and Uhlenbrock, Birgit, Industry Effects of Monetary Policy in Germany. Available at SSRN: https://ssrn.com/abstract=168470 or http://dx.doi.org/10.2139/ssrn.168470

Bernd Hayo (Contact Author)

University of Marburg - School of Business & Economics ( email )

Universitaetsstr. 24
Marburg, D-35032
Germany
++49(0)6421-28-23091 (Phone)
++49(0)6421-28-23193 (Fax)

Birgit Uhlenbrock

University of Bonn ( email )

Walter-Flex-Str. 3
ZEI
53113 Bonn
Germany

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