𝔖 Bobbio Scriptorium
✦   LIBER   ✦

Monetary policy shocks in the euro area and global liquidity spillovers

✍ Scribed by João Sousa; Andrea Zaghini

Publisher
John Wiley and Sons
Year
2008
Tongue
English
Weight
496 KB
Volume
13
Category
Article
ISSN
1076-9307

No coin nor oath required. For personal study only.

✦ Synopsis

Abstract

We analyse the international transmission of monetary shocks with a focus on the effects of foreign liquidity on the euro area. We estimate two domestic structural VAR models for the euro area and then we introduce a global liquidity aggregate. The impulse responses show that a positive shock to foreign liquidity leads to permanent increases in the euro area M3 aggregate and the price level, a temporary rise in real output and a temporary appreciation of the euro real effective exchange rate. Moreover, we find that innovations in global liquidity play an important role in explaining price and output fluctuations. Copyright © 2007 John Wiley & Sons, Ltd.

📜 SIMILAR VOLUMES

The balance sheet channel of monetary po
The balance sheet channel of monetary policy: first empirical evidence for the euro area corporate bond market
✍ Gabe de Bondt 📂 Article 📅 2004 🏛 John Wiley and Sons 🌐 English ⚖ 138 KB

## Abstract The balance sheet channel of monetary policy working through the euro area corporate bond market is important, as shown by empirical results based on different methods for the first two and a half years since the introduction of the euro. The external finance premium on corporate bonds

Responses to monetary policy shocks in t
Responses to monetary policy shocks in the east and the west of Europe: a comparison
✍ Marek Jarociński 📂 Article 📅 2009 🏛 John Wiley and Sons 🌐 English ⚖ 360 KB

## Abstract This paper compares impulse responses to monetary policy shocks in the euro area countries before the EMU and in the New Member States (NMS) from central–eastern Europe. We mitigate the small‐sample problem, which is especially acute for the NMS, by using a Bayesian estimation that comb