Legal Structure, Financial Structure, and the Monetary Policy Transmission Mechanism

[...]The task facing the Eurosystem is even morecomplex than that facing countries with stable monetaryregimes, where the measurement of the national andregional impact of policy has already proved to be extremelydifficult. The creation of the Eurosystem constitutes aregime shift in virtually every sense of the term. Theintroduction of the euro seems sure to prompt adjustmentsin the economies of the member countries, andthese adjustments will probably alter the relationshipbetween the actions of the central bank and the real economy.That is, the monetary transmission mechanism of thecountries in the euro area will change, making the job ofthe new European Central Bank even more difficult thanit is already. But how quickly will it change, and whatwill it become?[...]