We estimate forward-looking interest-rate rules for five large OECD economies, allowing for time variation in the responses to macroeconomic conditions and in the variance of the policy rate. Conventional constant-parameter reaction functions likely blur the impact of i) model uncertainty, ii)...

The main characteristic of the implementation of the European Monetary Union (EMU) is the transition from various national currencies to the Euro, the common European currency. A final fixing of the individual bilateral exchange rates of all European countries involved in the Monetary Union...

The main characteristic of the implementation of the European Monetary Union (EMU) is the transition from various national currencies to the Euro, the common European currency. A final fixing of the individual bilateral exchange rates of all European countries involved in the Monetary Union...

A growing body of empirical literature has established interest rate rules as a convenient way to model and interpret monetary policy. However, as pointed out by Rudebusch (1998), vector autoregression (VAR) models used to recover the central banks' reaction functions generally rely on the...

The aim of this paper is twofold. First, we try to assess to what extent the transmission mechanisms are different across Europe. We concentrate on Europe's four biggest economies: France, Germany, Italy and U.K. Second, we seek to evaluate whether the building of Europe (through the Single...

In this paper we provide empirical evidence on the impact of US and UK monetary policy changes on credit supply of banks operating in Italy and France over the period 2000-2015, exploring the existence of an international bank lending channel. Exploiting bank balance sheet heterogeneity, we find...

Policy rates in advanced economies are at record lows and central banks have resorted to unconventional policy tools, but there are concerns that the low policy rates have not been transmitted to lending rates for households and non-financial firms. In this special feature, we investigate...