One Money, Many Markets : Monetary Transmission and Housing Financing in the Euro Area /

We study the transmission of monetary shocks across euro-area countries using a dynamic factor model and high-frequency identification. We develop a methodology to assess the degree of heterogeneity, which we find to be low in financial variables and output, but significant in consumption, consumer...

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Dettagli Bibliografici
Autore principale: Corsetti, Giancarlo
Altri autori: Duarte, Joao, Mann, Samuel
Natura: Periodico
Lingua:English
Pubblicazione: Washington, D.C. : International Monetary Fund, 2020.
Serie:IMF Working Papers; Working Paper ; No. 2020/108
Accesso online:Full text available on IMF
Descrizione
Riassunto:We study the transmission of monetary shocks across euro-area countries using a dynamic factor model and high-frequency identification. We develop a methodology to assess the degree of heterogeneity, which we find to be low in financial variables and output, but significant in consumption, consumer prices, and variables related to local housing and labor markets. Building a small open economy model featuring a housing sector and calibrating it to Spain, we show that varying the share of adjustable-rate mortgages and loan-to-value ratios explains up to one-third of the cross-country heterogeneity in the responses of output and private consumption.
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Descrizione fisica:1 online resource (63 pages)
Natura:Mode of access: Internet
ISSN:1018-5941
Accesso:Electronic access restricted to authorized BRAC University faculty, staff and students