Understanding Monetary Spillovers in Highly Integrated Regions
The Case of Europe
Bibliographic Data
| ID | 21512848 |
|---|---|
| Authors | Martin Feldkircher (0000-0002-5511-9215, Vienna School of International Studies (DA) Vienna Austria, corresponding author), Helene Schuberth (Oesterreichische Nationalbank (OeNB) Vienna Austria) |
| Year | 2023 |
| Volume | 85 |
| Issue | 4 |
| Pages | 859-893 |
| Publication date | 2023-08-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Oxford Bulletin of Economics and Statistics (JOURNAL) |
| Journal identifiers | ISSN: 0305-9049 • E-ISSN: 1468-0084 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/obes.12549 |
| OpenAlex | W4361280441 |
| Language | EN |
| References cited | 58 |
We analyse why conventional monetary policy tightening in the euro area leads to a deterioration of output in Central‐, East and Southeastern Europe (CESEE). Our findings show that negative spillovers mainly arise through a decline in CESEE imports and exports, induced by a decrease in euro area demand. Negative spillovers are amplified through knock‐on effects through third‐countries and cannot be cushioned by favourable exchange rate movements. We also find evidence for a broad‐based retrenchment of cross‐border bank flows to the region. For the CESEE policymaker, our results indicate a limited power of exchange rate policies to buffer foreign, adverse monetary policy shocks
Economics · Exchange rate · Exchange-rate regime · International economics · Macroeconomics · Monetary economics · Monetary policy · Retrenchment · Economic Policies and Impacts · Global Financial Crisis and Policies · Monetary Policy and Economic Impact
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| Highly cited | No |
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