de Grauwe, Paul 
ORCID: 0000-0001-5225-1301 and Senegas, Marc-Alexandre
(2004)
Asymmetries in monetary policy transmission: some implications for EMU and its enlargement.
Journal of Common Market Studies, 42 (4).
pp. 757-773.
ISSN 0021-9886
Abstract
In this article we analyse how the enlargement of a monetary union may affect the design of the common monetary policy when the latter transmits asymmetrically between the member countries. We find that the use of national information about inflation and unemployment in the design of the common monetary policy allows for tackling the heterogeneity induced by this asymmetry. This implies that if enlargement contributes to augmenting the transmission asymmetry of monetary policy in EMU, it will raise the need to take into account information about national economies in the formulation of optimal monetary policies in the monetary union. Furthermore, the choice for a new EU Member State to enter EMU will also depend on the monetary strategy implemented by the European Central Bank and, in particular, whether the latter would take the asymmetries in the transmission of monetary policy actions into account.
| Item Type: | Article |
|---|---|
| Official URL: | http://onlinelibrary.wiley.com/journal/10.1111/%28... |
| Additional Information: | © 2004 Blackwell Publishing |
| Divisions: | European Institute |
| Subjects: | H Social Sciences > HG Finance J Political Science > JZ International relations |
| JEL classification: | E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E52 - Monetary Policy (Targets, Instruments, and Effects) F - International Economics > F5 - International Relations and International Political Economy > F59 - International Relations and International Political Economy: Other |
| Date Deposited: | 05 Oct 2012 10:24 |
| Last Modified: | 11 Dec 2024 22:49 |
| URI: | http://eprints.lse.ac.uk/id/eprint/46572 |
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