IDEAS home Printed from https://ideas.repec.org/a/cup/nierev/v187y2004ip93-103_8.html
   My bibliography  Save this article

The Effects of Euro Area Interest Rate Changes: Evidence from Macroeconomic Models

Author

Listed:
  • McAdam, Peter
  • Morgan, Julian

Abstract

This paper examines the effects of changes in Euro Area interest rates using macroeconomic models. It examines the results of a harmonised monetary policy simulation at the Euro Area level using the National Institute of Economic and Social Research's Global Economic Model (NiGEM) and the European Central Bank's Area Wide Model (AWM). Comparison is also drawn with the aggregate results from Euro Area National Central Bank models as reported in van Els et al. (2001). Overall, the results across the different models are broadly consistent with what might be regarded as the stylised facts of the monetary transmission mechanism. That is to say that, following a policy tightening, there is an initial fall in output consisting of a more pronounced investment response and a less pronounced consumption response. This output fall is accompanied by protracted price dynamics.

Suggested Citation

  • McAdam, Peter & Morgan, Julian, 2004. "The Effects of Euro Area Interest Rate Changes: Evidence from Macroeconomic Models," National Institute Economic Review, National Institute of Economic and Social Research, vol. 187, pages 93-103, January.
    • Handle: RePEc:cup:nierev:v:187:y:2004:i::p:93-103_8
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S0027950100010395/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Goodhart, Charles, 2004. "The interaction between the Bank of England's forecasts and policy, and the outturn," LSE Research Online Documents on Economics 24710, London School of Economics and Political Science, LSE Library.
    2. McAdam, Peter & Jellema, Tjeerd & Keuning, Steven & Mink, Reimund, 2004. "Developing a euro area accounting matrix: issues and applications," Working Paper Series 356, European Central Bank.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:nierev:v:187:y:2004:i::p:93-103_8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://edirc.repec.org/data/niesruk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.