Monetary Policy in Emu When the Transmission is Assymmetric and Uncertain
22 Pages Posted: 15 Apr 2003
Date Written: March 2003
In this paper we address the issue of how transmission uncertainty could affect the choice between a federal monetary policy based on national data and one on aggregated data. We find that the uncertainty about the transmission process increases the need to take into account information about national economies in the formulation of optimal monetary policies in a monetary union.
JEL Classification: E52, E58, F33
Suggested Citation: Suggested Citation