![Business cycle transmission from the US to Germany-A structural factor approach [An article from: European Economic Review]](https://www.ebooknetworking.net/books/B00/0PD/bigB000PDYIK0.jpg)
Business cycle transmission from the US to Germany-A structural factor approach [An article from: European Economic Review]
Book Details
Author(s)
S. Eickmeier
Publisher
Elsevier
ISBN / ASIN
B000PDYIK0
ISBN-13
978B000PDYIK2
Availability
Available for download now
Marketplace
United States 🇺🇸
Description
This digital document is a journal article from European Economic Review, published by Elsevier in 2007. The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.
Description:
This paper investigates the transmission of US macroeconomic shocks to Germany using a large-dimensional structural dynamic factor model. This framework allows us to investigate many transmission channels simultaneously, including ''new'' channels such as stock markets, foreign direct investment, bank lending and the confidence channel. We find that US shocks affect the US and Germany largely symmetrically. Trade seems to be the most relevant transmission channel. Monetary policy reactions to strong price movements seem to play a role as well. No clear conclusion can be drawn yet on the role of financial markets and the confidence channel. Negative domestic influences apparently more than offset positive US influences in the German economy between 1995 and 2000, but the US recession in 2001 appeared to be the main culprit in the German slump.
Description:
This paper investigates the transmission of US macroeconomic shocks to Germany using a large-dimensional structural dynamic factor model. This framework allows us to investigate many transmission channels simultaneously, including ''new'' channels such as stock markets, foreign direct investment, bank lending and the confidence channel. We find that US shocks affect the US and Germany largely symmetrically. Trade seems to be the most relevant transmission channel. Monetary policy reactions to strong price movements seem to play a role as well. No clear conclusion can be drawn yet on the role of financial markets and the confidence channel. Negative domestic influences apparently more than offset positive US influences in the German economy between 1995 and 2000, but the US recession in 2001 appeared to be the main culprit in the German slump.
