Monetary Policy Transmission in the Euro Area: A Study by the Eurosystem Monetary Transmission Network

515 Pages·2004·2.49 MB·English

by  Ignazio Angeloni

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Monetary Policy Transmission in the Euro Area
Properconductofmonetarypolicyrequiresunderstandingthemone-
tarytransmissionmechanism,tomonitortheeconomy,makedecisions
onthestanceofpolicyandexplainthepolicyactionstothepublic. An
urgenttasknowfortheEuropeanCentralBankistogatherandanalyze
evidenceontheeuro-zone.Thisbookpresentstheresultsofthefirstever
researchprojectonthemonetarytransmissionmechanismintheeuro
area.Thefindingsaredrawnfromamulti-yearcollaborativeprojectby
the European Central Bank and the other Eurosystem central banks.
The Monetary Transmission Network research team analyzed both
macro-andmicro-economicdatafortheareaasawholeandforindivid-
ualcountries.Theresultsdescribedincountrycasestudiesandoverview
essaysbycentralbankeconomists,alongwithadiscussionchapterby
eminent academics, provide an essential contribution to the latest
research.
IgnazioAngeloniisDeputyDirectorGeneralforResearchattheEuro-
peanCentralBank.Heistheco-authorofMonetaryPolicyintheEuro
Area:StrategyandDecision-MakingattheEuropeanCentralBank(with
VitorGaspar,OtmarIssingandOresteTristani: CambridgeUniversity
Press,2001)
AnilKashyapistheEdwardEagleBrownProfessorofEconomicsand
Finance at the University of Chicago’s School of Business. He is the
authorofCorporateFinancingandGovernanceinJapan:TheRoadtothe
Future(withTakeoHoshi:MITPress,2001).
BenoˆıtMojonisSeniorEconomistattheGeneralEconomicResearch
DivisionoftheEuropeanCentralBank.

Monetary Policy Transmission
in the Euro Area
A Study by the Eurosystem Monetary
Transmission Network
Editedby
Ignazio Angeloni, Anil K Kashyap
and Benoˆıt Mojon
  
Cambridge, New York, Melbourne, Madrid, Cape Town, Singapore, São Paulo
Cambridge University Press
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© Cambridge University Press, 2003
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First published in print format 2003
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- 
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- 
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Contents
Listofcontributors pageix
ForewordbyO.Issing xi
Acknowledgements xiii
Listofabbreviations xv
Introduction 1
. , .    . 
Part1 Macroeconometricevidenceonthe
transmissionmechanismintheeuroarea
1 Somestylisedfactsontheeuroareabusinesscycle 15
.-.   . 
2 Themonetarytransmissionmechanismintheeuro
area:evidencefromVARanalysis 36
.   . 
3 AVARdescriptionoftheeffectsofmonetarypolicyin
theindividualcountriesoftheeuroarea 56
.   . 
4 Analysingmonetarypolicytransmissionatthe
euroarealevelusingstructuralmacroeconomic
models 75
.   . 
5 Theeffectsofmonetarypolicyintheeuroarea:
evidencefromstructuralmacroeconomicmodels 91
.  , . , .  
.-. 
v
vi Contents
6 Financialfrictionsandthemonetarytransmission
mechanism:theory,evidenceandpolicyimplications 107
. , .   . 
Part2 Firms’investmentandmonetarypolicy:
evidencefrommicroeconomicdata
Introductiontopart2 131
7 Firminvestmentandmonetarypolicytransmission
intheeuroarea 133
.. , . , . ,
.   .  
8 Businessinvestmentandmonetarytransmission
inBelgium 162
. , .   . 
9 InvestmentandmonetarytransmissioninGermany:a
microeconometricinvestigation 173
.  
10 Monetarypolicyandcorporateinvestment
inFrance 187
..   . 
11 Monetarypolicyandfirms’investmentinItaly 198
.   . 
12 Monetarytransmission:empiricalevidencefrom
Luxembourgfirm-leveldata 212
.   . 
13 Theroleoftradecreditandbanklendingrelationships
inthetransmissionmechanisminAustria 221
.-. 
Part3 Theroleofbanksinthetransmission:
evidencefrommicroeconomicdata
Introductiontopart3 233
14 Financialsystemsandtheroleofbanksinmonetary
policytransmissionintheeuroarea 235
. , . , . -
, .   . 
Contents vii
15 Thereactionofbanklendingtomonetarypolicy
measuresinGermany 270
. 
16 Isthereabank-lendingchannelofmonetarypolicy
inSpain? 284
.   . -
17 Isthereabank-lendingchannelinFrance?Evidence
frombankpaneldata 297
. , .   . 
18 Isthereabank-lendingchannelofmonetarypolicy
inGreece?Evidencefrombank-leveldata 309
. . , . .  
. . 
19 TheItalianbankingsystemandmonetarypolicy
transmission:evidencefrombank-leveldata 323
. 
20 Theimpactofmonetarypolicyonbanklendingin
theNetherlands 335
.  
21 Thecross-sectionalandthetimedimensionof
thebank-lendingchannel:theAustriancase 347
. 
22 Thebank-lendingchannelofmonetarypolicy:
identificationandestimationusingPortuguese
microbankdata 359
.   .  
23 TransmissionofmonetarypolicyshocksinFinland:
evidencefrombank-leveldataonloans 372
.   . 
Part4 Monetarypolicyintheeuroarea:
summaryanddiscussionofthemainfindings
24 Monetarypolicytransmissionintheeuroarea:where
dowestand? 383
. , .  , .  
. 
viii Contents
25 Discussionofchapter24 413
.  , . , . ,
 . 
Appendix
26 Theeuroareaeconomicandfinancialstructure:an
overview 433
.-.   . 
References 455
Listoffigures 478
Listoftables 481
Subjectindex 486
Authorindex 492