Abstract
As a legacy of the Fast, capital and money market structures still differ considerably across EMU countries at the start of European monetary union. There is a widely held view among academics and policymakers that these differences are an important matter of concern for the ECB, as they might thwart a uniform transmission of monetary policy. Therefore, so the argument goes, the short and medium term real,md financial market responses to monetary policy innovations will differ across thc; countries of the EMU.
Revision of our paper presented at the conference on ‘Common Money, Uncommon Regions’ organized by the ZEI, Bonn 24–25 July, 1998. We are grateful to our discussant Lars Svensson and the participants of the ZEI conference for their suggestions and to Harris Dellas, Juergen von Hagen, Heejoon Kang, Patrick Minford, Dave Smant a id Christopher Waller for very helpful discussions. The second author benefitted from the hospitality of tie NIAS where part of this paper was written.
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Arnold, I.J.M., de Vries, C.G. (2000). Endogenous Financial Structure and the Transmission of ECB Policy. In: von Hagen, J., Waller, C.J. (eds) Regional Aspects of Monetary Policy in Europe. ZEI Studies in European Economics and Law, vol 1. Springer, Boston, MA. https://doi.org/10.1007/978-1-4757-6390-4_7
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