Abstract
In Chapter 2, asymmetries in financial structure were used to explain why the interest rate channel differs across the EMU member countries. In some countries, like Germany or France, long-term interest rates appear to influence aggregate demand whereas in other countries, like Italy, short-term interest rates are considered to be very important. This reflects differences in the borrowing pattern of the private sector. In Germany and France, borrowing is primarily long-term, while in Italy short-term borrowing dominates. These differences in the nature of interest rate transmission are also identified in econometric estimates of consumption and investment equations (De Bondt et al. (1997)).
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© 2001 Springer-Verlag Berlin Heidelberg
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Clausen, V. (2001). Financial Structure and Asymmetric Monetary Transmission: Implications of a Differential Role of Asset Markets. In: Asymmetric Monetary Transmission in Europe. European and Transatlantic Studies. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-59565-3_3
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DOI: https://doi.org/10.1007/978-3-642-59565-3_3
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-64029-2
Online ISBN: 978-3-642-59565-3
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