EMU and Asymetries in the Monetary Policy Transmission.

The decision to launch EMU has focused attention on possible asymmetries in output and prices responses to the single monetary policy across EU countries. Unfortunately, the numerous attempts to establish the extent of such asymmetries in the context of empirical macroeconomic models have not provided a consistent and robust picture of cross-country differences in monetary transmission and they are affected by methodological problems. This study takes stock of the insights and the empirical evidence from this latter strand of research, and discusses the possible evolution of economic and financial structures in EMU.