EconPapers    
Economics at your fingertips  
 

The role of money and monetary policy in crisis periods: the Euro area case

Jonathan Benchimol () and Andre Fourcans ()

No WP1201, ESSEC Working Papers from ESSEC Research Center, ESSEC Business School

Abstract: In this paper, we test two models of the Eurozone, with a special emphasis on the role of money and monetary policy during crises. The role of separability between money and consumption is investigated further and we analyse the Euro area economy during three different crises: 1992, 2001 and 2007. We find that money has a rather significant role to play in explaining output variations during crises whereas, at the same time, the role of monetary policy on output decreases significantly. Moreover, we find that a model with non-separability between consumption and money has better forecasting performance than a baseline separable model over crisis periods.

Keywords: Euro area; Money; DSGE forecasting (search for similar items in EconPapers)
JEL-codes: E31 E51 E58 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cba, nep-dge, nep-eec, nep-mac and nep-mon
Date: 2012-02-01, Revised 2012-02-27
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://hal-essec.archives-ouvertes.fr/docs/00/67/28/06/PDF/WP1201.pdf (application/pdf)

Related works:
Journal Article: MONEY AND MONETARY POLICY IN THE EUROZONE: AN EMPIRICAL ANALYSIS DURING CRISES (2017) Downloads
Working Paper: The role of money and monetary policy in crisis periods: the Euro area case (2012) Downloads
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:ebg:essewp:dr-12001

Access Statistics for this paper

More papers in ESSEC Working Papers from ESSEC Research Center, ESSEC Business School ESSEC Research Center, BP 105, 95021 Cergy, France. Contact information at EDIRC.
Bibliographic data for series maintained by Sophie Magnanou ().

 
Page updated 2018-12-14
Handle: RePEc:ebg:essewp:dr-12001