In this paper, I study how the implementation of the European Monetary Union (EMU), which involves the adoption of a single currency and a common monetary policy by all members, impacted its core members (Germany, Spain, France and Italy). Specifically, I examine how the implementation of the EMU affected the core members’ experience with macroeconomic shocks and consequently, how effective a common monetary policy is in meeting their individual economic objectives. I use SVARs (Structural Vector Autoregressions) to model the core members’ experience with EMU integration. Using SVARs, I generate impulse response graphs (IRGs) to illustrate how macroeconomic shocks propagate through the monetary transmission mechanisms (MTMs) of the different core EMU countries
"A Study of Monetary Transmission Mechanism Convergence and Monetary Policy Effectiveness among Core EMU Members from 1991-2006,"
Undergraduate Economic Review: Vol. 3
, Article 6.
Available at: http://digitalcommons.iwu.edu/uer/vol3/iss1/6