Monetary Transmission Network (MTN)

The MTN was created in 1999 to comprehensively research the transmission of monetary policy in the newly formed euro area. The outcome of the MTN consists of contributions by economists from the ECB and all national central banks of the Eurosystem. It existed for about three years and covered three fields.

Three fields

1. Macroeconomic time series data were used to estimate a variety of econometric models of the transmission at euro area and national level.
2. Microeconomic data were used to measure the effects of monetary policy on individual non-financial firms, focusing specifically on their investment behaviour.
3. Other microeconomic estimates were performed on commercial banks’ balance sheet data to analyse their lending behaviour.

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Results

This research was presented at an ECB-organised conference in December 2001 and then published in the ECB Working Paper Series and in several other publications (see below).

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Other publications

• The effects of monetary policy in the euro area, by M. Ehrmann, L. Gambacorta, J. Martínez-Pagés, P. Sevestre and A. Worms, published in: Oxford Review of Economic Policy 19 (1), 58-72.
• New findings on firm investment and monetary transmission in the euro area, by J. B. Chatelain, A. Generale, I. Hernando, U. von Kalckreuth and P. Vermeulen, published in: Oxford Review of Economic Policy 19(1), 73-83.
• New macroeconomic evidence on monetary policy transmission in the euro area, by P. van Els, A. Locarno , B. Mojon and J. Morgan, published in: Journal of the European Economic Association 1 (2-3) April-May 2003.
• Monetary policy transmission in the euro area: new evidence from micro data on firms and banks, by J. B. Chatelain, M. Ehrmann, A. Generale, J. Martínez-Pagés, P. Vermeulen and A. Worms, published in: Journal of the European Economic Association 1 (2-3) April-May 2003.
• The effects of euro area interest rate changes: evidence from macroeconomic models, by P. McAdam and J. Morgan, published in: National Institute Economic Review no 187, January 2004.
• Does monetary policy have asymmetric effects? A look at the investment decisions of Italian firms, by E. Gaiotti and A. Generale, published in: Giornale degli Economisti e Annali di Economia, vol 61, no 1, pp 29-59, June 2002.
• The interest rate and credit channel in Belgium : an investigation with micro-level firm data, by P. Butzen, C. Fuss and P. Vermeulen, published in: Brussels Economic Review Cahiers Economiques de Bruxelles 45 (3), Autumn 2002, 5-35.
• Recent findings on monetary policy transmission in the euro area, ECB Monthly Bulletin article, October 2002,  pdf 1172 kB, en

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