Monetary transmission in Germany: Lessons for the Euro area
β Scribed by Kirstin Hubrich; Peter Vlaar
- Publisher
- Springer-Verlag
- Year
- 2004
- Tongue
- English
- Weight
- 492 KB
- Volume
- 29
- Category
- Article
- ISSN
- 0377-7332
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## 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
## Abstract Previous euro area money demand studies have used aggregated national time series data from the countries participating in the European Monetary Union (EMU). However, aggregation may be problematic because macroeconomic convergence processes have taken place in the countries of interest