Monetary policy transmission in the euro area: New evidence from micro data on firms and banks

Jean-Bernard Chatelain, Andrea Generale, Philip Vermeulen, Michael Ehrmann, Jorge Martínez-Pagés and Andreas Worms
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Andrea Generale: BI - Banca d´Italia
Jorge Martínez-Pagés: Bank of Spain - Bank of Spain
Andreas Worms: Bundesbank - Bundesbank

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: This paper presents an overview of the results of a research project on monetary transmission pursued by the Eurosystem, which has analysed micro data on firms and banks in several countries of the euro area in great detail. There is strong empirical support for an interest rate channel working through firm investment. Furthermore, a credit channel can be identified with firm micro data. On the bank side, there is evidence that lending reacts differently to monetary policy according to bank balance sheet characteristics. In particular, banks that have a less liquid asset composition show a stronger loan supply response. This finding may be due to banks drawing on their liquid assets to cushion the effects of monetary policy on their loan portfolio, which is in line with the existence of close relationships between banks and their loan customers.

Keywords: monetary policy transmission; interest rate channel; credit channel; euro area; transmission de la politique monétaire; canal du taux d'intérêt; canal du crédit; zone Euro. (search for similar items in EconPapers)
Date: 2003
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00119489v2
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Citations: View citations in EconPapers (53)

Published in Journal of the European Economic Association, 2003, 1 (2-3), pp.731-742. ⟨10.1162/154247603322391350⟩

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Related works:
Journal Article: Monetary Policy Transmission in the Euro Area: New Evidence From Micro Data on Firms and Banks (2003)
Working Paper: Monetary policy transmission in the euro area: New evidence from micro data on firms and banks (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:halshs-00119489

DOI: 10.1162/154247603322391350

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