This paper surveys the optimum currency area (OCA) literature. It is organised into four
phases: the'pioneering phase'which put forward the OCA theory and its properties …

This paper reviews recent advances in the specification and estimation of Bayesian Vector
Autoregressive models (BVARs). After describing the Bayesian principle of estimation, we …

How should central banks view movements in equity, housing and foreign exchange
markets? Can policy-makers improve economic performance by paying attention to asset …

This paper examines the implications of recent research on monetary policy rules for
practical monetary policy making, with special emphasis on strategies for setting interest …

This paper studies the monetary transmission mechanism using disaggregated industry data
from five industrialized countries. Our goal is to document the cross-industry heterogeneity of …

This paper investigates how monetary policy should be conducted in a two-region general
equilibrium model with monopolistic competition and price stickiness. This framework …

Among the many challenges facing the new Eurosystem is the possibility that the regions of
the euro area will respond differently to interest rate changes. In this essay, I provide …

Proper conduct of monetary policy requires understanding the monetary transmission
mechanism, to monitor the economy, make decisions on the stance of policy, and explain …

This paper presents a complete set of results describing the effects of monetary policy in 10
countries of the euro area for the pre-EMU period. For each country, we impose one of three …

The main finding of this paper is that the European Union (EU) countries fall into two broad
groups according to the effects of monetary policy adjustments on economic activity …