One size may not fit all: Financial fragmentation and European monetary policies - Aix-Marseille Université Access content directly
Journal Articles Review of International Economics Year : 2023

One size may not fit all: Financial fragmentation and European monetary policies

Abstract

This article investigates the impact of European Central Bank policies on credits considering financial and banking fragmentation. Using European data from the past decade, we estimate SVAR models to analyze the regional impact of conventional and unconventional measures on price and volume indicators of fragmentation. The risk-taking channel is studied using GVAR models to document the national consequences of this fragmentation. We find that unconventional measures increase credit in peripheral countries. Monetary policies alleviate fragmentation, but mostly in terms of price dispersion rather than credit volume. Finally, unconventional measures imply a rebalancing of European bank assets in favor of foreign currency denominated-assets.
Fichier principal
Vignette du fichier
Rev International Economics - 2022 - Gagnon - One size may not fit all Financial fragmentation and European monetary.pdf (2.74 Mo) Télécharger le fichier
Origin Publication funded by an institution

Dates and versions

hal-03777950 , version 1 (15-09-2022)

Licence

Identifiers

Cite

Marie‐hélène Gagnon, Céline Gimet. One size may not fit all: Financial fragmentation and European monetary policies. Review of International Economics, 2023, 31 (1), pp.305-340. ⟨10.1111/roie.12627⟩. ⟨hal-03777950⟩
73 View
93 Download

Altmetric

Share

Gmail Mastodon Facebook X LinkedIn More