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2 edition of Credit and asymmetric effects of monetary policy in six EU countries found in the catalog.

Credit and asymmetric effects of monetary policy in six EU countries

G. J. De Bondt

Credit and asymmetric effects of monetary policy in six EU countries

an overview

by G. J. De Bondt

  • 377 Want to read
  • 4 Currently reading

Published by De Nederlandsche Bank in Amsterdam .
Written in English


Edition Notes

StatementG.J. de Bondt.
SeriesDNB staff reports -- no.23
The Physical Object
Pagination27p. ;
Number of Pages27
ID Numbers
Open LibraryOL18574623M

the EMU which viability may depend on the extent to which monetary policy effects differ across member states. Differences in financial structure across EMU countries may hamper the implementation of a common European monetary policy. This study focuses on six European countries: Germany, France, Italy, United Kingdom, Belgium and the Netherlands. the response of each country to a monetary policy shock. The effect of the monetary policy shock to interest rates persists in both economies for approximately 10 quarters. Interest rates follow a similar path in both countries. Consistent with our priors, the TWI in both countries responds immediately to the monetary policy shock.

  It is in the interest of every EU member state that countries in the Union hit by the coronavirus are able to take the necessary measures to control the pandemic and deal with the economic consequences without being constrained, and to do so very quickly. This column proposes a Covid credit line in the European Stability Mechanism, with allocation across member states. () lead to a convex aggregate supply curve and therefore also imply that monetary policy will hav e stronger effects during recessions. One of the more frequently cited empirical papers on the potentially asymmetric effects of monetary policy is Cover (), which finds evidence that positive monetary shocks have different effect s.

monetary policy shocks is related to the industrial composition of regions. In addition, dummy variables are used to control for possible country factors. Third, I test whether the differential effects of monetary policy vary more within countries or between countries. The organization of this paper is as follows. The next section offers a brief. the effect of other financial variables, especially property and share prices, on the output gap is highly significant. It appears that in almost all of the countries in our data set it is necessary to control for the effect of other financial variables on the output gap in order to find a signifi-cant effect for monetary policy.


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Credit and asymmetric effects of monetary policy in six EU countries by G. J. De Bondt Download PDF EPUB FB2

The ability of monetary policy to influence credit and the real economy is of central concern to policymakers and academics. This question is particularly pressing for developing countries, where the channels of monetary policy are impeded by financial underdevelopment and weak institutions (Beck et al.

Beck ). Using a sam ple of 12 European countries Clements et al. () found that monetary policy can affect output through its effects on credit. Barran et al. () showed how an access indicator (households' access to credit) is correlated with the availability of consumer credit relati ve to GDP.

The argument is that different. Second, the book contains an unprecedented set of studies on the effects of monetary policy using bank and firm panel data.

The results described in country case studies and overview essays by central bank economists, along with a discussion chapter by eminent academics, provide an essential contribution to research on the subject. for monetary policy shocks to affect real output in Germany and the Netherlands compared to France, Italy, Spain and Portugal.

This paper aims to shed further light on the monetary transmission mechanism in various EU member states by investigating the possibly asymmetric effects of unanticipated monetary shocks. In real world, this was the case of the stagnant loan growth during the recovery.6 BLC-based models that argue for the weak effects of expansionary policy through capital-constrained.

ABSTRACT. This paper examines whether the effects of monetary policy on output in Europe are asymmetric. Data from the –90 period are used to identify money‐supply shocks and their effects on output for a panel of 18 European countries.

asymmetric€effects€of€the€single€monetary€policy€in€the€countries€forming€the€euro€area,€thereby complicating€its€implementation.1€However,€as€argued€by€Arnold€and€de€Vries€(),€the€regime.

Are the Effects of Monetary Policy Asymmetric. By Regis Barnichon, Christian Matthes, and Tim Sablik The Federal Reserve uses monetary policy to stimulate the economy when unemployment is high and to rein in inflationary pressures when the econ- omy is overheating.

However, evidence suggests that these policy stances have unequal effects. Abstract. The present paper assesses whether monetary policy effects are asymmetric over the business cycle by estimating a univariate model for GDP including additionally the first difference of the 3-month Austrian interest rate as a measure for monetary policy.

1 Other types of asymmetric effects have been explored by Garcia and Schaller (), who examine whether monetary policy affects output differently in different phases of the business cycle, and Ravn and Sola (), who look at the effects of monetary policy on transitional dynamics.

Hooker and Knetter () analyze whether military pro. This paper examines the monetary transmission mechanism in six EU member states. It provides useful empirical evidence for assessing the impact of a common monetary policy in the early stages of EMU, and enables us to form a view on how the regime change represented by EMU is likely to be translated into changes in policy multipliers in the various EU countries.

Downloadable. In this paper, we look at the sector-level asymmetric effects of the monetary policy shocks on economic activity in Turkey. Using business cycles for the state of the economy, we find that monetary policy shocks have strong effects on both aggregate GDP, services and industrial production and sub-sectors during recessionary periods.

In this paper we analyse the effects of a common monetary policy shock in eleven manufacturing industries in seven countries of the euro area (Austria, Belgium, France, Germany, the Netherlands, Italy and Spain).

First, we document the cross-industry heterogeneity of the output effects of an area-wide monetary policy innovation. 1. Introduction. Embedded in the monetary transmission mechanism is the pass-through of the policy rate to a retail rate.

The speed of the pass-through rate is usually taken as an indication of the effectiveness of monetary policy or how rapid the impact of monetary policy would be felt (Becker, Osborn, & Yildirim, ).Monetary policy is effective, when a change in policy rate is transmitted.

Effects of a single European monetary policy: simulations with the multi-country model of the Deutsche Bundesbank Wilfried Jahnke and Bettina Landau Introduction In the spring of it will be decided whether the European Monetary Union (EMU) will start in and which countries will participate.

In the meantime it is completely open which. In this paper, we look at the sector-level asymmetric effects of the monetary policy shocks on economic activity in Turkey. Using business cycles for the state of the economy, we find that monetary policy shocks have strong effects on both aggregate GDP, services and industrial production and sub-sectors during recessionary periods.

The results are weaker for the expansionary periods. Alan Blinder and I adapted this general idea to show how, by affecting banks' loanable funds, monetary policy could influence the supply of intermediated credit (Bernanke and Blinder, ).

Historically, monetary policy did appear to affect the supply of bank loans (at any given level of. As a result, banking sector and capital market development can weaken the effect of monetary policy via the bank lending channel.

This is due to these developments increasing the size, capital. Monetary policy -- European Union countries. Business cycles -- European Union countries.

Monetary policy -- Italy. Business cycles -- Italy. Italy -- Economic conditions -- European Union countries -- Economic conditions. Business cycles. Economic history. Monetary policy. European Union countries.

Italy. Asymmetric Effects of Monetary Policy in the U.S. and Brazil Ioannis Pragidis1 Periklis Gogas2 Benjamin Tabak3 () for European countries, implementing the method regarding asymmetry first introduced by Cover ().

Parker and Rothman () using the. Examining the asymmetric monetary policy response to foreign exchange market conditions in emerging and developing economies () The taylor rule and ’Opportunistic’ monetary policy. Journal of money, Credit and Bankingl Byles R () Quarterly Monetary Policy Report.

Rose D () Asymmetric Effects of Economic Activity on.argued that European Union (EU) economies are too dissimilar to be subjected to a common monetary policy.

Feldstein () goes so far as to predict that the political tensions created by the common monetary policy could lead to another European war. The debate boils down to a disagreement over how hard it will be to effectively run a common.The West African Economic and Monetary Union (WAEMU), like other monetary unions, faces a number of challenges in dealing with macroeconomic shocks.

1 A symmetric shock—that is, a shock affecting similarly all members of a monetary union—can in principle be addressed by the common monetary policy or by a coordinated fi scal policy response.