By Erik Britton and John Whitley of the Bank’s Conjunctural Assessment and Projections Division.
Erik Britton and John Whitley review previous studies and report results from a complementary empirical approach, summarising the evidence as inconclusive. They argue that some of the differences between the three economies are not really structural and that even where they are, this does not automatically imply that one economy will be more sensitive than another to a change in monetary policy.
Comparing the monetary transmission mechanism in France, Germany and the United Kingdom: some issues and results