Deep dive into beggar-thy-neighbour effects of monetary policy spillovers

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F61989100%3A27510%2F23%3A10252824" target="_blank" >RIV/61989100:27510/23:10252824 - isvavai.cz</a>

Alternative codes found

RIV/25840886:_____/23:N0000032

Result on the web

<a href="https://doi.org/10.1556/032.2023.00005" target="_blank" >https://doi.org/10.1556/032.2023.00005</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1556/032.2023.00005" target="_blank" >10.1556/032.2023.00005</a>

Result language

angličtina

Original language name

Deep dive into beggar-thy-neighbour effects of monetary policy spillovers

Original language description

We analyse the effect of the European Central Bank&apos;s (ECB) monetary shock spillover and its impact on the European Union&apos;s 9 countries outside the euro area (EA) between 2000 and 2020. We use the sign-restricted Bayesian VAR model and subsequent interpretation by plotting the impulse-response functions. Moreover, we investigate both conventional and unconventional monetary policies and its international transmission. The spillover of monetary policy is growing with the openness of economies and the ongoing deepening of integration. The output responds to the EA&apos;s monetary shock flexibly and persistently, but there is considerable heterogeneity across countries. We claim that it is essential for central banks outside the EA to monitor and incorporate the ECB&apos;s monetary policy spillover into decision-making processes. In particular, the international transmission of the unconventional monetary policy has a fundamental effect on the development of the price level, thus achieving price stability. In the case of implementing a counter-cyclical policy, it is also necessary to monitor conventional policy. However, there is no need to fight the spillover effect since there is no beggar-thy-neighbour problem, i.e., spillover effect works in the same direction in both domestic and foreign country.

Czech name

—

Czech description

—

Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

—

OECD FORD branch

50202 - Applied Economics, Econometrics

Project

—

Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2023

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Acta Oeconomica

ISSN

0001-6373

e-ISSN

1588-2659

Volume of the periodical

73

Issue of the periodical within the volume

1

Country of publishing house

HU - HUNGARY

Number of pages

23

Pages from-to

61-83

UT code for WoS article

000967582800004

EID of the result in the Scopus database

—