Year: 2017
Author: Kotz, Hans-Helmut, Semmler, Willi, Tahri, Ibrahim
Vierteljahrshefte zur Wirtschaftsforschung, Vol. 86 (2017), Iss. 2 : pp. 41–59
Abstract
Europe"s financial landscape has substantial institutional variety. This reflects different societal responses to (or preferences with regard to) trade-offs. For monetary policy, it implies a challenging environment, particularly in times of financial crises. Using a non-linear VAR-model we document diverging responses to an identical monetary policy impulse, especially between two states of nature (regimes). Crucially, with such heterogeneity between countries in crisis, monetary policy can become, counter-intentionally, de-stabilizing. Thus, a more homogenous financial infrastructure could mitigate such counterproductive policy effects. However, the underlying reasons for the institutional variety are rooted deeply in societal compromises. And convergence must not necessarily be towards a stronger emphasis on capital markets.
Journal Article Details
Publisher Name: Global Science Press
Language: English
DOI: https://doi.org/10.3790/vjh.86.2.41
Vierteljahrshefte zur Wirtschaftsforschung, Vol. 86 (2017), Iss. 2 : pp. 41–59
Published online: 2017-06
AMS Subject Headings: Duncker & Humblot, Duncker & Humblot
Copyright: COPYRIGHT: © Global Science Press
Pages: 19
Keywords: Capital Markets Union European Monetary Union European Union Financial Crisis Monetary Policy Convergence non-linear VAR-model E40 G01 G15 E10 E20
Author Details
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Diversity in finance: An overview
Schmidt, Reinhard H.
Vierteljahrshefte zur Wirtschaftsforschung, Vol. 87 (2018), Iss. 4 P.9
https://doi.org/10.3790/vjh.87.4.9 [Citations: 0]