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Zagreb International Review of Economics & Business, Vol. 7 No. 2, 2004.

Original scientific paper

A VAR Analysis of Monetary Transmission Mechanism in the European Union

Ivan Lovrinović ; Faculty of Economics and Business, University of Zagreb, Zagreb, Croatia
Manuel Benazić ; Istarska kreditna banka, Umag, Croatia

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Abstract

The paper studies the functioning of the monetary transmission mechanism in the EU. It analyses the influence of an increase in short-term interest rate on real and monetary variable e.g. industrial production of the EU members, retail prices, monetary mass and real exchange rate. Frequently used econometric technique of VAR has been used to analyse the monetary transmission mechanism.

Keywords

monetary transmission mechanism; interest rate; VAR; decomposition of variance; impulse response

Hrčak ID:

35612

URI

https://hrcak.srce.hr/35612

Publication date:

1.11.2004.

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