 The Real Effects of Monetary Policy in the European Union: What Are the Differences?Ramana Ramaswamy and Torsten Sloek No 1997/160, IMF Working Papers from International Monetary Fund Abstract: The main finding of this paper is that the European Union (EU) countries fall into two broad groups according to the effects of monetary policy adjustments on economic activity. Estimates based on a vector autoregression model indicate that the full effects of a contractionary monetary shock on output in one group of EU countries (Austria, Belgium, Finland, Germany, Netherlands, and United Kingdom) take roughly twice as long to occur, but are almost twice as deep as in the other group (Denmark, France, Italy, Portugal, Spain, and Sweden). The paper discusses the implications of these results for the effective conduct of monetary policy in the euro area. Keywords: WP; monetary policy; country; transmission mechanism; effects of monetary policy; periphery of the EU; EMU; monetary transmission mechanism; monetary policy innovation; monetary policy action; transmission of monetary policy; response of output; VAR approach; Vector autoregression; Short term interest rates; Monetary policy frameworks (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:1997/160 Ordering information: This working paper can be ordered from Access Statistics for this paper More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC. |
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