Assessing Monetary Policies in the Euro Area, the UK and the US Evidence from the Pre- and Post-Crisis Periods

Posted: 5 Jun 2015

See all articles by Evangelos Salachas

Evangelos Salachas

Athens University of Economics and Business

Nikiforos T. Laopodis

Fairfield University - School of Business - Department of Finance; Deree

Georgios P. Kouretas

Athens University of Economics and Business; IPAG Business School

Date Written: February 10, 2015

Abstract

In this paper, we examine the effectiveness of monetary policies in selected countries of the Euro area (France, Germany, and Italy), the United States and the United Kingdom for the period from 1990 to 2013. We additionally focus on the 2007 financial crisis where the efficacy of both conventional and unconventional monetary policies is investigated. Our results suggest that the traditional monetary policy mechanism was effective in the pre-crisis but broke down in the post-crisis subperiod. Overall, the use of non-traditional policy measures by central banks helped improve economic conditions but not in a similar manner across countries. Specifically, such measures proved more effective in the US than in the Euro area or the UK.

Keywords: monetary policy transmission mechanism, VAR/VEC, financial crisis, unconventional policy measures, economic activity

JEL Classification: E51, E52, E58

Suggested Citation

Salachas, Evangelos and Laopodis, Nikiforos T. and Kouretas, Georgios P., Assessing Monetary Policies in the Euro Area, the UK and the US Evidence from the Pre- and Post-Crisis Periods (February 10, 2015). Available at SSRN: https://ssrn.com/abstract=2614421 or http://dx.doi.org/10.2139/ssrn.2614421

Evangelos Salachas (Contact Author)

Athens University of Economics and Business ( email )

76 Patission Street
Athens, 104 34
Greece

Nikiforos T. Laopodis

Fairfield University - School of Business - Department of Finance ( email )

North Benson Rd.
Fairfield, CT 06824
United States
203-254-4000, ext. 3273 (Phone)
203-254-4105 (Fax)

HOME PAGE: http://www.faculty.fairfield.edu/nlaopodis

Deree ( email )

Gravias 6, Aghia Paraskevi
Athens, 153-42
Greece

Georgios P. Kouretas

Athens University of Economics and Business ( email )

Department of Business Administration
Athens, GR-10434
Greece

HOME PAGE: http://www.aueb.gr/Users/kouretas/index_en.html

IPAG Business School ( email )

184 BD Saint Germain
Paris, 75006
France

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