This paper aims at establishing the link between economic performance and financial stability in the European Union. We use the seminal framework – both in terms of variables and econometric method – of Beck and Levine (2004) to estimate this causal relationship, independently from but...

The aim of the paper is to understand how the financial crisis has affected the interest rate pass-through (PT) in the Eurozone between market rates and bank interest rates. We have applied a SUR-ECM model. This methodology allows testing for the homogeneity of the PT of the euro area countries....