Monetary Policy Impulses, Local Output and the Transmission Mechanism

Massimo Caruso ()
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Massimo Caruso: Banca d'Italia, Sede di Roma,

No 537, Temi di discussione (Economic working papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: This paper evaluates the effects of unanticipated monetary policy shocks on Italian output on the basis of highly disaggregated data and a VAR methodology. The impact of unexpected changes in the money market interest rate on the pattern of industrial production - based on qualitative business opinion survey data - has been computed for 164 local industries. The perceived output effects of monetary impulses go up for local industries with higher investment expenditures, less liquid firms and for industrial sectors that have a higher correlation with the aggregate business cycle. The hypothesis that small firms bear a disproportionate burden of monetary policy does not find support in this sample.

Keywords: monetary policy shocks; business opinion surveys; heterogeneity (search for similar items in EconPapers)
JEL-codes: E52 E58 R12 (search for similar items in EconPapers)
Date: 2004-12
New Economics Papers: this item is included in nep-cba, nep-geo, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:bdi:wptemi:td_537_04

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