TY  - JOUR
AU  - Cecchetti,Stephen G.
TI  - Legal Structure, Financial Structure, and the Monetary Policy Transmission Mechanism
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 7151
PY  - 1999
Y2  - June 1999
UR  - http://www.nber.org/papers/w7151
L1  - http://www.nber.org/papers/w7151.pdf
N1  - Author contact info:
Stephen G. Cecchetti
Monetary and Economic Department
Bank for International Settlements
Centralbahnplatz 2
4002 Basel
SWITZERLAND
Tel: +41 61 280 8350
Fax: +41 61 280 9113
E-Mail: stephen.cecchetti@bis.org
AB  - Among the many challenges facing the new Eurosystem is the possibility that the regions of the euro area will respond differently to interest rate changes.  In this essay, I provide evidence that differences in financial structure are the proximate cause for these national asymmetries in the monetary policy transmission mechanism, and that these differences in financial structure are a result of differences in legal structure.  My conclusion is that unless legal structures are harmonized across Europe, the financial structures and monetary transmission mechanisms of the European union countries will remain diverse.
ER  -