Responses to Monetary Policy Shocks in the East and the West of Europe: A Comparison

Marek Jarociński

No 287, CASE Network Studies and Analyses from CASE-Center for Social and Economic Research

Abstract: This paper estimates responses to monetary shocks for several of the current members of the EMU (in the pre-EMU sample) and for the Central and East European (CEE) countries, along with the mean response in each of the groups. The problem of the short sample, especially acute in the case of the CEE, is mitigated by using a Bayesian estimation which combines information across countries. The estimated responses are similar across regions, but there is some evidence of more lagged and deeper price responses in the CEE economies. If this results from structural differences, premature entering the EMU would cause problems, but if from credibility issues, entering the EMU would be desirable. Also, with longer response lags, conducting a stabilizing monetary policy should be difficult in the CEE currently, and giving it up might not be a big loss after all.

Keywords: monetary policy transmission; Structural VAR; Bayesian estimation; exchangeable prior (search for similar items in EconPapers)
Pages: 28 Pages
Date: 2004
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Citations: View citations in EconPapers (14)

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Related works:
Journal Article: Responses to monetary policy shocks in the east and the west of Europe: a comparison (2010)
Working Paper: Responses to monetary policy shocks in the east and the west of Europe: a comparison (2008)
Working Paper: Responses to Monetary Policy Shocks in the East and the West of Europe: A Comparison (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:sec:cnstan:0287

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