Convergence of Monetary Transmission in Emu New Evidence
27 Pages Posted: 3 Jun 2001
Date Written: April 2001
This paper examines how the pass-through of monetary policy measures in 6 EMU countries has evolved over time and whether there is convergence in monetary transmission. The countries included are: Belgium, France, Germany, Italy, the Netherlands and Spain, and the sample period is 1980-2000. We conclude that major differences in pass-through exist in our sample, both in terms of initial as well as long-run responses to policy-induced interest rate changes. There is no indication for convergence of monetary policy transmission.
Keywords: Monetary Transmission, Pass-Through, Interest Rate Stickiness, EMU
JEL Classification: E52, E43
Suggested Citation: Suggested Citation