ECB monetary policy transmission to unilaterally euroised economies

Georgi Krustev

No 3293, Working Paper Series from European Central Bank

Abstract: Leveraging the unique setting of unilateral euroisation, this paper examines the spillover effects of euro area monetary policy on Montenegro and Kosovo. Through the lens of a structural VAR model with block exogeneity, it shows that euro area monetary policy shocks can significantly influence output and inflation in these economies, albeit with a delayed response, while contributing only modestly to their overall business cycle fluctuations. JEL Classification: C11, C32, E52

Keywords: block exogeneity; monetary transmission; structural VAR (search for similar items in EconPapers)
Date: 2026-10
Note: 2215397
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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbwps:20263293

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