 The transmission of monetary policy impulses in BelgiumV. Périlleux and
Q. Wibaut
Economic Review, 2004, issue ii, 37-45 Abstract: The first part of this article outlines the monetary policy transmission process. It pinpoints some special features of the Belgian economy, such as its high degree of openness, especially in relation to euro area partners, the high level of household financial assets, relatively weak dependence on bank lending at macroeconomic level, and the automatic indexation of wages. The macroeconomic simulations presented in the second part of the article show that, in Belgium as in the euro area, a monetary policy tightening tends to cause a temporary contraction in activity, due substantially to the decline in investment, and a slower but more persistent fall in prices. The euro appreciation normally caused by such a monetary policy shock amplifies its effects on activity, but above all accelerates its impact on prices. The reaction of the Belgian economy does not appear to be obviously different from that of the rest of the euro area. It seems to be slightly more moderate in volume, owing to the lower sensitivity of investment, and more rapid in terms of prices. Date: 2004 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:nbb:ecrart:y:2004:m:june:i:ii:p:37-45 Access Statistics for this article More articles in Economic Review from National Bank of Belgium Contact information at EDIRC. |
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