Does single monetary policy have asymmetric real effects in EMU ?

Marilyne Huchet (1)

1 CREM - Centre de recherche en économie et management

This article compares reactions of economies in Economic Monetary Union to a single monetary policy. For that, we estimate a reaction function supposed to represent the behaviour of European Central Bank over the period 1980-1998. Then residuals are introduced into the production equation of each country. We break up monetary shocks in two axes: first, anticipated against unanticipated shocks and then positive against negative shocks. These distinctions permit a best evaluation of the degree of homogeneity of the effects of monetary policy. France, Germany, Spain and Austria seem more sensitive to unanticipated interest rates increases contrary to Belgium and Italy. These results illustrate all the problem of single monetary policy.

Mots clés: Economic Monetary Union; monetary policy shocks; reaction function; asymmetric effects; Economic Monetary Union.

Domaines: Economies et finances

Marilyne Huchet. Does single monetary policy have asymmetric real effects in EMU ?. Journal of Policy Modeling, 2003, 25 (2), pp.151-178. ⟨10.1016/S0161-8938(02)00204-1⟩. ⟨halshs-00143785⟩