The Monetary Transmission in the US and the Euro Area: Common Features and Common Frictions

Nuno Alves

Working Papers from Banco de Portugal, Economics and Research Department

Abstract: This paper compares the monetary transmission mechanism in the US and the 3 largest economies of the euro area. We start by showing that the dynamic responses to a monetary policy shock in each of the four countries are analogous. A model with a small set of frictions that broadly accounts for these responses is then presented. The model incorporates nominal wage contracts, habits for preferences in consumption and the staggered adjustment of households. portfolios. A common characterization of the monetary transmission mechanism in the US and the main euro area countries is therefore attainable.

JEL-codes: E31 E32 E41 E44 E50 (search for similar items in EconPapers)
Date: 2004
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.bportugal.pt/sites/default/files/anexos/papers/wp200414.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:ptu:wpaper:w200414

Access Statistics for this paper

More papers in Working Papers from Banco de Portugal, Economics and Research Department Contact information at EDIRC.
Bibliographic data for series maintained by DEE-NTD ().