Asymmetric Monetary Transmission in Europe

1. Front Matter

   Pages I-X

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2. Introduction

   • Volker Clausen

   Pages 1-11

3. Sources of Asymmetric Monetary Transmission in Europe

   • Volker Clausen

   Pages 13-30

4. Financial Structure and Asymmetric Monetary Transmission: Implications of a Differential Role of Asset Markets

   • Volker Clausen

   Pages 31-61

5. Financial Structure and Asymmetric Monetary Transmission: Implications of a Differential Interest Elasticity of Aggregate Demand

   • Volker Clausen

   Pages 63-80

6. Financial Structure, Asymmetric National Money Demand Functions and the Stability of European Money Demand

   • Volker Clausen

   Pages 81-108

7. Asymmetric Degrees of Openness and Monetary Transmission in Europe

   • Volker Clausen

   Pages 109-127

8. Asymmetric Wage-Price Mechanisms and Monetary Transmission in Europe

   • Volker Clausen

   Pages 129-146

9. Empirical Evidence on Asymmetric Monetary Transmission in Europe

   • Volker Clausen

   Pages 147-168

10. Monetary Policy in an Era of Structural Change

    • Volker Clausen

    Pages 169-185

11. Back Matter

    Pages 187-207

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The euro and the ESCB have started in January 1999 and there is naturally a wide-ranging interest in academia and among policymakers in OECD coun­ tries, how successful European Monetary Union will and can be. EMU has started with 11 countries and experienced a rapid depreciation of the cur­ rency. With so many EU countries joining for a historical monetary union in a period of economic globalization, international financial market changes and ongoing EU enlargement the problem of monetary policy efficiency becomes crucial; especially as so many countries in the EU still have high unemploy­ ment rates and the euro has just started at the beginning of a cyclical upswing in the euro zone. Monetary policy is also quite crucial, because the Maastricht convergence criteria severely restrict the scope of national fiscal policy. With a very limited stock of valuable European monetary experience which could be usefully exploited by the ECB and the ESCB respectively, one naturally will appreciate advanced economic modeling of the main issues. This book takes an analytical look at the problem of asymmetric monetary transmission in Euroland. Facing the ECB's monetary policy, individual mem­ ber countries are likely to experience different policy effects. Countries differ in their financial structure -a well-known argument in the literature -but also in the characteristics of goods and labor markets. The latter fields have been somewhat neglected in the literature but receive broad analytical attention here.

• Business Cycle
• European Central Bank
• European Monetary Union (EU)
• Europäische Währungsunion
• Geldpolitik
• Konjunktur
• Monetary Transmission
• Transmissionsmechanismus
• econometrics
• financial markets
• labor market
• macroeconomics
• monetary policy
• monetary union

• Kelley School of Business, Indiana University, Bloomington, USA

  Volker Clausen

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