Interest rate pass-through in the euro area: After two decades of crises, a return to normality?

Natalia Andries, Steve Billon () and Nicolas Rautureau
Additional contact information
Natalia Andries: ERUDITE - Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12 - Université Gustave Eiffel
Steve Billon: LARGE - Laboratoire de Recherche en Gestion et Economie - UNISTRA - Université de Strasbourg
Nicolas Rautureau: LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Nantes Univ - IAE Nantes - Nantes Université - Institut d'Administration des Entreprises - Nantes - Nantes Université - pôle Sociétés - Nantes Univ - Nantes Université

Working Papers from HAL

Abstract: div>This paper investigates the monetary policy transmission in the euro area countries over two decades of single currency. This period was marked by financial, sovereign debt and health crises, as well as by episodes of low and high inflation rates. To face these challenges, the European Central Bank used both conventional and unconventional monetary policy measures of an unprecedented scale. We study whether, and if so to what extent, these different events have affected the transmission of monetary policy to retail bank interest rates in several euro area countries. Our results confirm previous findings, namely that interest rate passthrough has been influenced by the various crises that occurred over the course of the euro area existence. After the pandemic, however, we observe a return to a near complete transmission of monetary policy impulses to lending rates, likely under the effect of a reduction in excess liquidity.

Keywords: Bank interest rates; Monetary policy transmission; Interest rate pass-through; Structural changes (search for similar items in EconPapers)
Date: 2025-04-10
Note: View the original document on HAL open archive server: https://hal.science/hal-05029134v1
References: Add references at CitEc
Citations:

Downloads: (external link)
https://hal.science/hal-05029134v1/document (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:hal:wpaper:hal-05029134

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().