eCite Digital Repository

International transmission of monetary shocks to the Euro area: Evidence from the U.S., Japan and China’


Vespignani, J, International transmission of monetary shocks to the Euro area: Evidence from the U.S., Japan and China', Economic Modelling, 44 pp. 131-141. ISSN 0264-9993 (2015) [Refereed Article]

Copyright Statement

Copyright 2014 Elsevier

DOI: doi:10.1016/j.econmod.2014.10.005


The aim of this paper is to examine the influence of monetary aggregate shocks in the U.S., China and Japan on the Euro area between 1999 and 2012. There are marked differences in the effect of increases in monetary aggregates in China, Japan and the U.S. on Euro area economic and financial variables over 1999–2012. Increases in monetary aggregates in China are associated with significant increases in the world price of commodities and with increases in Euro area inflation, industrial production and exports. Results are consistent with shocks to China's M2 facilitating domestic growth with expansionary consequences for the Euro area economy. In contrast, increases in monetary aggregates in Japan are associated with significant appreciation of the Euro and decreases in Euro area industrial production and exports. Production of goods highly competitive with European goods in Japan and expenditure switching in Japan are consistent with the results. U.S. monetary expansion has relatively small effects on the Euro area over this period compared to results reported in the literature for earlier sample periods.

Item Details

Item Type:Refereed Article
Keywords:International monetary shocks; China's monetary aggregates, Euro area commodity prices
Research Division:Economics
Research Group:Applied economics
Research Field:Macroeconomics (incl. monetary and fiscal theory)
Objective Division:Economic Framework
Objective Group:Macroeconomics
Objective Field:Macroeconomics not elsewhere classified
UTAS Author:Vespignani, J (Associate Professor Joaquin Vespignani)
ID Code:95835
Year Published:2015 (online first 2014)
Web of Science® Times Cited:7
Deposited By:TSBE
Deposited On:2014-10-09
Last Modified:2015-04-24

Repository Staff Only: item control page