Are the effects of monetary policy in the euro area greater in recessions than in booms?

Gert Peersman () and Frank Smets

No 52, Working Paper Series from European Central Bank

Abstract: This paper investigates whether monetary policy impulses have asymmetric effects on output growth in seven countries of the euro area (Germany, France, Italy, Spain, Austria, Belgium and the Netherlands). First, it is shown that these seven countries share the same business cycle. Next, strong evidence is presented that area-wide monetary policy impulses, measured as the contribution of monetary policy shocks to the short-term interest rate in a simple VAR for the euro area economy, have significantly larger effects on output growth in recessions than in booms. These differences are most pronounced in Germany, France, Italy, Spain, and Belgium, while they are much smaller in Austria and the Netherlands JEL Classification: E4, E5

Keywords: euro area; monetary transmission mechanism (search for similar items in EconPapers)
Date: 2001-03
Note: 58657
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (122)

Downloads: (external link)
https://www.ecb.europa.eu//pub/pdf/scpwps/ecbwp052.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:ecb:ecbwps:200152

Access Statistics for this paper

More papers in Working Paper Series from European Central Bank 60640 Frankfurt am Main, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Official Publications ().