Retail bank interest rate pass-through in the euro area: An empirical survey

Natalia Andries and Steve Billon

Economic Systems, 2016, vol. 40, issue 1, 170-194

Abstract: This paper surveys the empirical literature on the retail bank interest rate pass-through in the euro area countries. We provide an in-depth discussion of the econometric issues challenging an appropriate assessment of the interest rate pass-through, such as unit root and structural break tests and asymmetry treatment. We offer an overview of the empirical evidence regarding the extent of the short-run and long-run interest rate pass-through and the adjustment dynamics of bank interest rates. We also provide insight into the state of monetary policy transmission more than 15 years after the introduction of the euro, and in the aftermath of the financial and sovereign debt crises.

Keywords: Interest rate pass-through; Monetary policy; Bank interest rates; Euro area (search for similar items in EconPapers)
JEL-codes: E43 E52 G21 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (37)

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Working Paper: Retail bank interest rate pass-through in the euro area: An empirical survey (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecosys:v:40:y:2016:i:1:p:170-194

DOI: 10.1016/j.ecosys.2015.06.001

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