TY  - JOUR
AU  - Angeloni,Ignazio
AU  - Kashyap,Anil K.
AU  - Mojon,Benoit
AU  - Terlizzese,Daniele
TI  - The Output Composition Puzzle: A Difference in the Monetary Transmission Mechanism in the Euro Area and U.S.
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 9985
PY  - 2003
Y2  - September 2003
UR  - http://www.nber.org/papers/w9985
L1  - http://www.nber.org/papers/w9985.pdf
N1  - Author contact info:
Ignazio Angeloni
European Central Bank
Postfach 16 03 19
D-60066 Frankfurt am Main
GERMANY
E-Mail: ignazio.angeloni@ecb.int

Anil Kashyap
Booth School of Business
University of Chicago
5807 S. Woodlawn Avenue
Chicago, IL 60637
Tel: 773/702-7260
Fax: 773/702-0458
E-Mail: anil.kashyap@chicagobooth.edu

Benoît Mojon
Banque de France
1 rue de la Vrilliere
75001 Paris
E-Mail: benoit.mojon@banque-france.fr

Daniele Terlizzese
Banca d'Italia
Via Nazionale 91
Roma 00136 ITALY
E-Mail: Daniele.Terlizzese@bancaditalia.it
AB  - We revisit recent evidence on how monetary policy affects output and prices in the U.S. and in the euro area. The response patterns to a shift in monetary policy are similar in most respects, but differ noticeably as to the composition of output changes. In the euro area investment is the predominant driver of output changes, while in the U.S. consumption shifts are significantly more important. We dub this difference the output composition puzzle and explore its implications and several potential explanations for it. While the evidence seems to point at differences in consumption responses, rather than investment, as the proximate cause for this fact, the source of the consumption difference remains a puzzle.
ER  -