Financial structure and the transmission of monetary shocks: preliminary evidence for the Czech Republic, Hungary and Poland

Alessio Anzuini and Aviram Levy ()
Additional contact information
Aviram Levy: Banca d'Italia

No 514, Temi di discussione (Economic working papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: The paper analyses the financial structure of the private sector in the Czech Republic, Hungary and Poland and assesses its implications for the monetary transmission mechanism. The financial accounts of these countries provide a picture of a private sector which is predictably financially less mature than the EU average: the corporate sector relies significantly on non-market financial liabilities (such as trade credits and non-traded shares) and bears a substantial exchange rate risk; the household sector is less sophisticated both in terms of financial assets, whose composition is tilted towards bank deposits, and liabilities, the volume of which is still negligible. VAR system estimates conducted separately on each acceding country suggest that, despite the inferior financial development of these countries, the co-movement of macroeconomic variables conditional on a monetary policy shock is similar across countries and not dissimilar to what is found in the more advanced economies.

Keywords: Financial structure; identified VAR; monetary policy shock; price puzzle. (search for similar items in EconPapers)
JEL-codes: C30 E44 E52 F41 (search for similar items in EconPapers)
Date: 2004-07
New Economics Papers: this item is included in nep-cba, nep-fmk, nep-ifn, nep-mac, nep-mon and nep-tra
References: Add references at CitEc
Citations: View citations in EconPapers (22)

Downloads: (external link)
http://www.bancaditalia.it/pubblicazioni/temi-disc ... 04-0514/tema_514.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bdi:wptemi:td_514_04

Access Statistics for this paper

More papers in Temi di discussione (Economic working papers) from Bank of Italy, Economic Research and International Relations Area Contact information at EDIRC.
Bibliographic data for series maintained by ().