No. 1535 - Asymmetric monetary policy transmission across euro-area manufacturing industries
This paper examines the transmission of monetary policy to the manufacturing sector in the euro area, analysing possible asymmetries between contractionary and expansionary shocks. The analysis uses monthly data on industrial production and producer prices over the period 2003-24 and assesses how the financial and productive characteristics of firms shape the effects of monetary policy.
Contractionary monetary policy shocks produce persistent declines in output and prices, whereas expansionary shocks increase them more modestly and with shorter-lived effects.
Monetary tightening weighs more heavily on intermediate and capital goods sectors than on those producing consumer goods; the impact is also more pronounced in industries with more highly leveraged firms and in the durable goods sector, whose demand is more sensitive to changes in interest rates.
Instagram
YouTube
X - Banca d'Italia
Linkedin
RSS
E-mail Alert
